GAS has continued its spiral and has had a recent pattern of starting the trading day with a precipitous decline followed by a bounce somewhere roughly 20 cents -all of which were sell the pop opp's in the extreme watch out there is a cooling rend finally o the way by dips down to the s3
if you can and sell the pops for now when it finally turns we can buy fall is around the corner now
so this will not stay down forever obviously any hurricane hits the gulf it will run to 4 very quickly.
Remember some trading volume in the extreme occurred on the 2 line puts very ominous
maybe someone long is buying insurance maybe something more ominous is on the horizon
these gluts will turn to draws by next year as evidenced by the super-contango which has developed Deecmber gas trading points above October. I hope you listened to me regarding UNG
this ERF has already gone up where UNG has now begun to collapse. Each time there is a rollover the UNg locks in a loss and now that it is a closed end fund so to speak a premium is built in that
makes the UNG prohibitive as a long term investment. How do you win with UNG -well it is dependent on a pop before the contract expires I would rather own the contract and buy ERF for the long term.
Oil is poised to go up(this also givers a little push to ERF) market dollar and macro eco data
are as usual the sign posts
We plan to buy into the Bgz to protect the entire portfolio on the next leg up or if necessary
if the rug gets pulled out unexpectedly- The data on Thursday was discounted the data Friday a non-event except tech earnings were very strong and as we pointed out tech like financials are capable of taking the market north that is all Oil would need to break the high
this time we carefully watch the signs to see if Oil hold the range-you know we believe it will bracket up eventually we will have to see if that time is now or not
watch for you overnight news most traders are out nothing should move until the morning but the asia action and news might h=give us the advantage we need to position early
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