In Today's Post:

1. Holdings Watch
2. Commodity Watch - Gas Preview and Oil Review
3. Odds & Ends 

Holdings Watch: Continuing to trim holdings as 1) I'll be out of pocket next week and 2) the energy sectors, while still not expensive, have had a good run. The Wiki Holdings and Performance Tabs (both subscribers only) are updated. 

• (CHK) - Out the (CHK) July $60 calls (CHKGL) for $7, up 320% since 3 entries beginning early April. I continue to hold the common here.

• (PQ) -  Sold the (PQ) July $25 calls (PQGE) for $2.50, up 127% since entry in early May. This is still one of the cheapest E&P's out there (4.9x '09 CFPS estimates which have not risen since 2 weeks after the 1Q call) and I would not have sold it but for my trip. I continue to hold the common here. 

• (CHK) - Entered the (CHK) June $65 calls for $0.90 for a rare WILDZDAYTRADE (extreme high risk of which I think I've only done 5 ytd) after oil retreated upon the EIA reports and the stocks sagged. Even the gassy ones and with a Jefco upgrade at my back (smart guys those fellas) we punted for $1.45, up 61% which is nice for 3 hours of waiting and watching a tick chart which is not what I generally do with my time. 

Commodity Watch

Natural Gas: continued its relentless upward trajectory yesterday as expectations grew that today's storage report would show a near record low injection on cooling load and continued weak imports. Gas rose $0.26 to close yesterday at $13.21 and the 12 month strip is now over the $13 mark ($13.14) as well. Gas is nearly a dime in early trading.

• Tropics Watch: All clear on the Atlantic front except for some tropical waves which don't appear to have the gas to develop into much more than rain.  

EIA Gas Storage Preview:

My Number: 65 Bcf injection

• Imports Continue To Swoon. 3.8 Bcfgpd lower than year ago levels as both Canadian piped gas and especially LNG lag. Consensus seems to be that we need to see $15 gas to bump up LNG volumes and I don't disagree.

• Weather: It was hot with Cooling Degree Days of 74 (which is more July-ish than early June-ish) coming in well above the prior week's 54 and the year ago week's 51. EEI said electricity generation was up 6.8% week to week and 3.8% from a year ago. Other consultants put have the week's generation spiking into double digit % territory.

• Comps On Injections: 80 Bcf injection last week and a 89 injection in the year ago period.