I've been playing Nat Gas a bit this past week. I got in too
early at the bottom and was stopped out; thereby missing the
bounce. But when UNG hit the downtrend line at $6 resist I took a
swing, double short with KOLD. Got stopped out today with a 21%
profit. Now the question is: what is today's bounce? a double
bottom reversal? or a bear flag for another leg down? Matt feels
UNG will go to its 2002 lows, so a bear flag may be another
shorting op via KOLD.Personally I don't see UNG reversing here, so
if the bear flag becomes a Bull Flag, then I see it being range
bound for some time between $5 and $6 which could also be
profitable using either KOLD (short) or BOIL (long).
Any comments or insights from others are very welcome :-)
Posted by hamvestor on 2nd of Feb 2012 at 01:19 pm
Thanks for the heads-up on BOIL. I picked some up right after
your post, before it really took off. I had been looking for a way
to play natgas after Clive Maund's very bullish article on it this
morning, but wasn't aware of BOIL. Hopefully we have a
double-bottom here and not a dead-cat bounce before the next leg
down...
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Nat Gas via leveraged ETF's
Posted by keithbob on 2nd of Feb 2012 at 11:14 am
I've been playing Nat Gas a bit this past week. I got in too early at the bottom and was stopped out; thereby missing the bounce. But when UNG hit the downtrend line at $6 resist I took a swing, double short with KOLD. Got stopped out today with a 21% profit. Now the question is: what is today's bounce? a double bottom reversal? or a bear flag for another leg down? Matt feels UNG will go to its 2002 lows, so a bear flag may be another shorting op via KOLD.Personally I don't see UNG reversing here, so if the bear flag becomes a Bull Flag, then I see it being range bound for some time between $5 and $6 which could also be profitable using either KOLD (short) or BOIL (long).
Any comments or insights from others are very welcome :-)
Thanks for the heads-up on
Posted by hamvestor on 2nd of Feb 2012 at 01:19 pm
Thanks for the heads-up on BOIL. I picked some up right after your post, before it really took off. I had been looking for a way to play natgas after Clive Maund's very bullish article on it this morning, but wasn't aware of BOIL. Hopefully we have a double-bottom here and not a dead-cat bounce before the next leg down...