Posted by James_Roe on 7th of Dec 2022 at 01:51 pm
KOLD has had a huge rally over the last week and the STS on the
newly formed Long was 27% away, as an inverse ETF it was reacting
to decreasing sales to Europe which has not had a very cold winter.
This morning the US announced an LNG partnership with the UK
though that has boosted the NatGas sector. You should be looking at
the distance between the close and the STS and consider if that's
within your acceptable drawdown risk, and maybe consider skipping
trades that are heavily extended over the 9 EMA like KOLD was
yesterday.
We have been avoiding referring to the STS levels as a system
because they're more of a useful set of criteria for considering
potential trades, one that was that extended was a riskier bet than
most.
We're also having a discussion of pulling triple ETF's out of
the ETF list which is currently decided based only on the top 100
ETF's by volume. We have repeatedly said that it's a beta product,
but I'll slap a big disclaimer at the top.
KOLD has had a huge
Sincere question, am I reading the STS system wrong? ( ...
Posted by James_Roe on 7th of Dec 2022 at 01:51 pm
KOLD has had a huge rally over the last week and the STS on the newly formed Long was 27% away, as an inverse ETF it was reacting to decreasing sales to Europe which has not had a very cold winter.
This morning the US announced an LNG partnership with the UK though that has boosted the NatGas sector. You should be looking at the distance between the close and the STS and consider if that's within your acceptable drawdown risk, and maybe consider skipping trades that are heavily extended over the 9 EMA like KOLD was yesterday.
We have been avoiding referring to the STS levels as a system because they're more of a useful set of criteria for considering potential trades, one that was that extended was a riskier bet than most.
We're also having a discussion of pulling triple ETF's out of the ETF list which is currently decided based only on the top 100 ETF's by volume. We have repeatedly said that it's a beta product, but I'll slap a big disclaimer at the top.
https://www.reuters.com/business/energy/us-britain-launch-energy-partnership-boost-supplies-2022-12-07/
reuters.com
U.S., Britain launch energy partnership to boost supplies | Reuters
The United States and Britain announced on Wednesday an energy partnership aimed at sustaining a higher level of liquefied natural gas (LNG) exports to Britain and collaborating on ways to increase energy efficiency.
James, thanks so much for
Posted by mdgfain on 7th of Dec 2022 at 02:06 pm
James, thanks so much for the explanation! Very helpful.