Category Archives: UNG-23-05

Silver Upside Breakout

November 16, 2023 By in Gold & Silver, Positions, SLV, UNG, UNG-23-05, zsl, ZSL-23-01 1 Comment

Above Resistance, In (Potential) Trouble

So, Tuesday, the shorts were carried out on stretchers.

No matter the sharp upward spike, short covering has not changed the tsunami; the ‘liquidity crisis‘.

Basically, there’s not enough cash to go around, not enough in a big way.

Is it possible, in the coming year, there will be huge demand for cash … fiat cash?

With that backdrop we have silver (SLV) making lower highs and lower lows.

Silver SLV, Daily

The chart shows a breakout above resistance. The question is, can it hold?

With price action where it is, just above resistance, SLV is at The Danger Point®

If it can’t push materially higher from here, it’s at risk of reversal.

Positioning

Silver:

With the above conditions and potential for downside, a short position was opened via Leveraged Inverse Fund ZSL

Entry at ZSL 18.18 (not advice, not a recommendation).

Hard Stop is TBD but will likely be the session low @ ZSL 18.04.

Trade is, ZSL-23-01

Natural Gas:

Trade UNG-23-05, was stopped out this session at UNG 6.44 for a minor profit of 0.10-pts.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Nat-Gas & Real Estate

November 14, 2023 By in IYR, Natural Gas, Positions, Real Estate, SRS, SRS-23-03, UNG, UNG-23-05

Stopped-Out

Sometimes you feel like kicking the computer.

In a way, today is, and is not, that day.

The IYR short, SRS-23-03, was stopped-out for a loss of 0.32-pts, about – 1.68%.

Not too bad, but not the desired outcome (not advice, not a recommendation).

As of this post (2:10 p.m., EST), the UNG trade (UNG-23-05) is testing its reversal, covered in this update.

Nat-Gas, UNG, Daily

Coming back to test a reversal as shown above, is normal market behavior. One just has to wait for the market to work itself out.

Positioning

The initial position UNG-23-05, remains intact with a hard Stop at 6.29 (not advice, not a recommendation).

However, after today’s session, that stop is likely to be moved to the day’s low; currently UNG 6.43 (not advice, not a recommendation.

Any further downside testing after today points probability to a trade failure.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Nat-Gas Washout, New Lows

November 10, 2023 By in Natural Gas, Positions, UNG, UNG-23-05, Wyckoff 1 Comment

Is Now, The Time?

Let’s remind ourselves why there’s trading interest in Nat-Gas; putting it succinctly, ‘disruption‘.

We have disruption in nearly everything else (food supply, auto parts, medicines), why not the infrastructure?

The premise for the opportunity (if one can call it that), was discussed months ago. The work, the idea, the strategy has already been covered.

It turns out, other professionals had the same idea, prompting this update.

Those speculators needed to be washed out before a potential set-up could be created.

We may be there now; Nat-Gas proxy, UNG, is at The Danger Point® (not advice, not a recommendation).

Nat-Gas UNG, Daily

As of this post (10:45 a.m., EST), UNG has penetrated support and is trading in a narrow range.

Breaking below support (blue line) puts UNG, in Wyckoff Spring Position, ready for potential reversal.

Note the heavy down volume (purple oval) with little net downside progress.

Positioning

Could UNG post lower? Certainly, anything can happen.

Have the longs been washed out?

Volume, price action and time say, if it has not happened already, we may be close.

An initial long position has been opened at UNG 6.34, with tentative stop at the session low, currently, UNG 6.29 (not advice, not a recommendation).

Trade is identified at UNG-23-05.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279