As commodities continue to be in focus for me as actionable ideas here and inside 12631, note the 15-minute chart below of the natural gas ETF.
After a strong prior uptrend, we saw opening strength faded quite aggressively today. Not only have we seen a sharp gap fill lower, but this afternoon bulls are not putting up much of a fight, as we could be bear-flagging. As they say, from false moves in one direction often come aggressive moves in the other.
If $26.60 now acts as resistance on bounces, I think you can look at shorting natty via a few of the bearish ETF’s if you do not play the futures.
Overall, natty has seen a tremendous run in recent weeks. However, we may see crude now begin to outperform on a relative basis as recent natty gains are digested.
What are you looking at this afternoon?
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$31
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next stop at $31
genious title/pic
Thanks, yoshi.
Took a strong position in DGAZ this morning at open after our conversation inside 12631. Great call. Thx Chess
Great work!
I think higher…low inventory levels, low production, another cold swath setting up this week…crazy maybe, but I think natty goes higher buying UGAZ on these dips.
Ah ok
So damn witty Chess, so damn witty.
PS I used to work for the ol Dwight Yoakam who is brilliant in that movie in my opinion…and he was not acting in that movie…at that time in his life…he was actually that much of a dick…the story goes that Billy Bob asked to Dwight to play the part due to Dwight being “a natural” for the role…in other words he is a huge dick haha but in his defense he has calmed down a bunch in the years since.
mmm French fried taters
I called long UNG at $17 on NOV 2. CAlled short yesterday. Advised short march april spread which has contracted 60 CENTS IN A DAY, enough to double your capital! Bounces may come but looks like more margin selling of longs before expiry of March possible. Have cut half spread and will exit remaining today. Am looking for UNG $22 within 2-3 months.
Viraj