1. Weather is looking mildly bullish but not enough to offset the increased production.
2. Production has increased 30+% since October-no one is entirely sure how much Oil and Gas will be produced in 2018.
3. The Tax Deal that will be signed by Trump later this week greatly benefits Oil and Gas Companies. Oil and Gas companies now have substantially lower breakevens point with a Corporate Tax Rate of 21%.
4. Limited Traders willing to go long until multiple weeks of drawdowns in the inventory reports.
With this said, we may see further downtrend in UGAZ ($50-$47 a share more than likely) BUT we are close to the NG rally.