Commitment of Trader's Report - Fund Liquidation In Natural Gas

The funds were in liquidation mode last week in the natural gas market.  The fund long position as of last Tuesday's close was 175,121 contracts, down 17,195 contracts according the COT report released on Friday.

The funds were long over 395,000 contracts in natural gas the week the market last topped in June.

As the market has fallen from the June high, funds were forced to liquidate losing positions.  If the market continues lower near term, funds may continue to liquidate.  But longer term, funds will likely add to existing long positions in an attempt to play the seasonal rally higher.