Taking gas.

Just in case you wondered it looks like the buy signal in gas got canceled.

090522ng

 

Now there is more than one way to look at this chart and this stop method.  A Basing Point method would place the stop 3-5% under the April low.  That’s a lot of capital to risk, even on a one unit  investment.  It may turn out to be a productive trade.  The other  way to look at this situation is what we call the hair trigger stop.  I.e., when short term signals of urgency occur run for the hills.  In this situation we would run for the hills.   Bottom fishers often catch boots and lose bait.  We will watch for a reentry point.

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