Morning Update Dec 18, 2019

Waiting for a spark. As for my position, this will pretty much be the theme, waiting… I’ll be waiting for gas to actually make a move toward $2.2 to add to my position or move closer to $2.75 to sell out. I wouldn’t mind $2.5. I have placed an order to add to my UNG position at $17.05 with another 20% of funds. This order is a limit day+extended hours order, allowing it to be bought any time the market is open.

So I got busy at work, back now. Need to make this quick. Weather sucketh, both GFS and ECMWF. Short positions may make another push here. I welcome this, my bad habits could make me some money here if things will continue to get worse just a little longer.

NG1 Dec 18, 2019 on 2hr chart at Tradingview.com

So one might have argued that RSI was on a diverging path from NG pricing the last few days, signalling this move lower. I’ll be watching this some and testing this theory over time from now on. Learning a lot of these new technical terms and how they work feels useful, but we’ll see. There is a man, as evidence, whom I know well enough to know a person can trade solely on fundamentals. I would argue I’m trading on a macro fundamental course right now with UNG. I have a plan, one that is keeping an eye on not just NGG20 contract, but further down the curve to keep me out of trouble.

Speaking of the curve. If you haven’t already, it would be good to learn what’s going on with the next 6 months of contracts, and be aware of their movements. Learn what backwardation and contango mean. It doesn’t have to make sense right now, but it will help in the future.

Ok, so that’s it for now. I will not be stopping out of my position. I have to order in to buy at $17.05 on UNG with 20% more funds. I started holding this position on Dec 17, and you can read about my reason for buying on the Dec 17 post.

Oldinvestor