We’re forever blowing bubbles…pretty bubbles in the…
Many hearts have been broken as traders continue to demonstrate that man is directly descended from geese by trying to catch the bottom of this market. We’ve actually honked once or twice ourselves.
So once more up to the breach good friends (as Henry V is reported to have said at Agincourt).
What we have here is what we call the aggressive trader’s buy signal in UNG. That seems pretty clear. Buying here is speculative. The Basing Point stop is 3% under the nearby low.
The conservative trader will watch with interest and buy on a penetration of the horizontal line.
For our account we will put a toe in the water tomorrow. Don’t do this at home unless you don’t mind losing the money, and definitely do it small.
The virtue of waiting for the horizontal line is that you won’t be caught in the bottom trap.
We will shortly write a letter on other natural gas stocks.