Random NG notes Dec 7, 2019

Just taking a look today at the chart for a few moments.

NG1 as of Dec 6, 2019 close on 4hr chart at Tradingview.com

I placed a trade in my demonstration account yesterday (Friday, Dec 6). I went long on UNG with 5 shares at $18.03, this is roughly 9% of a $1000 account. Being that I am entering UNG, I feel safe enough with going backward some on this trade. I’ll be happy to try adding a couple of times. I’ve been fairly accurate lately; somehow ;P This means I’ve been making only smaller trades with smaller gains. This is fine. I feel good about it, and hope I continue feel the confidence in myself and stay in-tune with the market.

Anyway, the reason for going long now is… Managed Money is back at a record short ratio. You can go to RonHenergy.com to see this same data. The data in the chart below is thru Tuesday, Dec 3. So the rest of the week, the market has moved, but moved back to similar pricing, assuming similar positioning.

DCOT data thru week Dec 3, 2019 at RonHenergy.com

Keep in mind, my position is small. I also have been trading UNG, which makes my position even less weighted. You should know by now, I’m very paranoid of a long trade due to the oversupply of gas. Also, referring back to the chart at the top of the page, momentum is currently bearish. I am showing resistance near $2.28 on January contract, which could be an ideal double bottom. If pricing bounces at the 2.28 area, this could lead to a nice long run. If we break down through 2.28, this could lead to $2.20ish. The market had a triple bottom in October, so this should not be counted out as well. There is plenty of time to digest this next week.


Leave a Reply