Commitment of Trader's Report - Natural Gas - Funds Adding To Long Positions In The Market

For the first time in three weeks, the hedge funds are finally adding to existing long positions in the natural gas market.

The funds may be tentative about reentering this market in which they built a record high long position of 488,901 contracts the very week it peaked last February.

But last week they were buyers attempting to trade the expected winter rally.  And during last week's trade, the market lost 13.5%.

Monday's holiday-delayed Commitment of Trader's report showed funds long 168,183 natural gas contracts (futures only, no options), up 20,663 from the previous week.

The current fund position is considered bullish as they have plenty of room to add to existing long positions if needed.  However, considering the losses suffered last week, the funds may continue to be less rather than more aggressive in adding coverage.