While the Fed tries to sell us the virtues of inflation, the poor consumers at the pump are getting soaked. As oil prices rise and French strikers strike, we see the national average retail gas price start to surge as the price increased to $2.834 a gallon which is the highest price since May 17th. Retail Prices have surged close to 14 cents a gallon in three weeks which just happens to coincide with the price increase that we have seen in crude since the September, 21 Fed meeting.
Since the Fed sent the signal that the printing presses were about to roll we have seen crude add over 11 dollars a barrel from peak to valley, a move that has had an immediate impact on the price of oil at the pump. Gas prices are 26 cents, or 10%, above a year ago while demand for gas hit the lowest level in almost 8 months. Demand for gas is running about 4.8 percent below last year while gasoline stocks are 4.3 percent above a year ago. The threat of quantitative easing, while giving the stock market a lift, is giving consumers the squeeze. A fine price to pay to save the economy......Read the entire article.
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Tuesday, October 19, 2010
Phil Flynn: Paying the Price for an Economic Recovery
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Barrel,
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PFG Best,
Phil Flynn
Michael Bagley: $100 Oil to Counter Dollar Weakness?
From Michael Bagley Oil Price.Com.....
The 13 percent decline in the Dollar Index since June has led some OPEC members to call for oil to rise to $100 a barrel. The U.S. currency's weakness means the "real price" of oil is about $20 less than current levels, Venezuelan Energy and Oil Minister Rafael Ramirez said last week at an OPEC meeting in Vienna. The group, which accounts for 40 percent of global crude output, left targets unchanged and called for greater adherence to quotas, which are being exceeded by a supertanker load a day. OPEC is also concerned about the dollar because as the dollar weakens, prices go up. They're not paying any attention to production discipline.
The Dollar Index, which tracks the currency against those of six U.S. trading partners, has dropped 6.1 percent in the past month. The nominal value of OPEC's net oil export revenue will be $818 billion in 2011, 10 percent more than this year, according to U.S. Energy Department forecasts. Shokri Ghanem, chairman of Libya's National Oil Corp., said a higher crude price would help OPEC offset the loss of revenue from the weaker dollar.
"We would love to see $100 a barrel," Ghanem said last week in Vienna. "We're losing real income. Libya in particular would like to see a higher oil price."
Kuwaiti Oil Minister Sheikh Ahmad al-Abdullah al-Sabah said in an interview that $70 to $85 is the "most comfortable" range, while his Algerian counterpart, Youcef Yousfi, said between $90 and $100 is "reasonable." Speculation that the Federal Reserve may further loosen monetary policy through so called quantitative easing has weakened the dollar. Fed Chairman Ben S. Bernanke said today the central bank may expand asset purchases because inflation is too low and unemployment too high in the U.S. OPEC kept its production target at 24.845 million barrels a day at its meeting last week. Output from the 11 members bound by quotas exceeds the group's ceiling by 1.9 million barrels a day, or about the same as produced by Nigeria or Angola, according to Bloomberg estimates.
Given our line of business, we receive quite a number of emails asking for our picks on energy and oil stocks. While we don't offer stock tips, I might suggest a resource for those of you who are looking for some additional insight and assistance. We have no paid relationship or affiliation with Pennystocks.com but Peter Leeds seems to be on a roll at the moment based on the charts and numbers I have seen lately so if you have some extra cash to put to work, you may want to visit his site so see what they are doing over there. www.pennystocks.com
In the meantime, As more details seep out about the European Union crisis meetings last April regarding Greece and the future of the euro, the key role of European Central Bank President Jean-Claude Trichet in hammering out the compromises to stabilize the situation has become clearer. It also has made the picking of his successor that much harder. Trichet, whose term expires next year, has always been the ultimate fixer. He cut his first policy teeth in the 1980s as director of the French Treasury and head of the Paris Club, where he steered government debtors through the Latin American debt crisis of that period.
But he also put on central bank gravitas as head of the Banque de France and gained sufficient credibility to be acceptable to the Germans and other conservative northern Europeans as the second president of the Frankfurt-based European Central Bank. Trichet's eight-year term is due to expire in November 2011, and the jockeying for his succession is already well under way. For more insightful analysis on ECB moves, I encourage you to read further below where my colleague, Darrell Delamaide, has offered his insights as to who the players on the board are for the next president of the ECB.
Read more great post from Michael Bagley at Global Intelligence Report.Com
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The 13 percent decline in the Dollar Index since June has led some OPEC members to call for oil to rise to $100 a barrel. The U.S. currency's weakness means the "real price" of oil is about $20 less than current levels, Venezuelan Energy and Oil Minister Rafael Ramirez said last week at an OPEC meeting in Vienna. The group, which accounts for 40 percent of global crude output, left targets unchanged and called for greater adherence to quotas, which are being exceeded by a supertanker load a day. OPEC is also concerned about the dollar because as the dollar weakens, prices go up. They're not paying any attention to production discipline.
The Dollar Index, which tracks the currency against those of six U.S. trading partners, has dropped 6.1 percent in the past month. The nominal value of OPEC's net oil export revenue will be $818 billion in 2011, 10 percent more than this year, according to U.S. Energy Department forecasts. Shokri Ghanem, chairman of Libya's National Oil Corp., said a higher crude price would help OPEC offset the loss of revenue from the weaker dollar.
"We would love to see $100 a barrel," Ghanem said last week in Vienna. "We're losing real income. Libya in particular would like to see a higher oil price."
Kuwaiti Oil Minister Sheikh Ahmad al-Abdullah al-Sabah said in an interview that $70 to $85 is the "most comfortable" range, while his Algerian counterpart, Youcef Yousfi, said between $90 and $100 is "reasonable." Speculation that the Federal Reserve may further loosen monetary policy through so called quantitative easing has weakened the dollar. Fed Chairman Ben S. Bernanke said today the central bank may expand asset purchases because inflation is too low and unemployment too high in the U.S. OPEC kept its production target at 24.845 million barrels a day at its meeting last week. Output from the 11 members bound by quotas exceeds the group's ceiling by 1.9 million barrels a day, or about the same as produced by Nigeria or Angola, according to Bloomberg estimates.
Given our line of business, we receive quite a number of emails asking for our picks on energy and oil stocks. While we don't offer stock tips, I might suggest a resource for those of you who are looking for some additional insight and assistance. We have no paid relationship or affiliation with Pennystocks.com but Peter Leeds seems to be on a roll at the moment based on the charts and numbers I have seen lately so if you have some extra cash to put to work, you may want to visit his site so see what they are doing over there. www.pennystocks.com
In the meantime, As more details seep out about the European Union crisis meetings last April regarding Greece and the future of the euro, the key role of European Central Bank President Jean-Claude Trichet in hammering out the compromises to stabilize the situation has become clearer. It also has made the picking of his successor that much harder. Trichet, whose term expires next year, has always been the ultimate fixer. He cut his first policy teeth in the 1980s as director of the French Treasury and head of the Paris Club, where he steered government debtors through the Latin American debt crisis of that period.
But he also put on central bank gravitas as head of the Banque de France and gained sufficient credibility to be acceptable to the Germans and other conservative northern Europeans as the second president of the Frankfurt-based European Central Bank. Trichet's eight-year term is due to expire in November 2011, and the jockeying for his succession is already well under way. For more insightful analysis on ECB moves, I encourage you to read further below where my colleague, Darrell Delamaide, has offered his insights as to who the players on the board are for the next president of the ECB.
Read more great post from Michael Bagley at Global Intelligence Report.Com
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Labels:
Bloomberg,
Dollar,
European,
Oil Price .Com,
OPEC
Using Calendar Spreads to Play a Short Term Top in Gold
From guest analyst J.W. Jones, an independent options trader using multiple forms of analysis to guide his option trading strategies. So far he's as on point as we've ever seen!
Recent price action in stocks and commodities reinforces the “don’t fight the Fed” mantra. What would our central bank be doing if it were not devaluing our currency, attempting to create inflation, and openly manipulating financial markets through a series of supposedly calculated open-market operations? I do not have any market prophecies; my crystal ball is on permanent vacation. The only certainty that presents itself is that the market pundits, the academics, and the analysts do not know exactly what is going to happen in the future.
We are in uncharted territory regarding government manipulation. We watch as our federal government actively and openly manipulates financial data in an attempt to boost asset prices with the hope that if Americans feel richer they will spend money more freely. What is going to be the catalyst to drive growth when the federal government and the Federal Reserve run out of manipulations?
By now the secret is out, the expected weakening of the U.S. dollar has propelled commodities and stocks higher in short order. The easy trade has likely passed and there are a few warning signs that are being largely ignored by the bullish masses. Business insiders are selling heavily while few are accumulating positions. The banks have not broken out and were under pressure for most of the trading day during Wednesday’s big advance. If the banks do not rally with the broad market, caution is warranted. We are approaching an uncertain period of time regarding earnings and the upcoming elections and we all know that financial markets hate uncertainty.
Additionally, the U.S. dollar is at key support and should that support level fail, stocks and commodities could continue their ascent in rapid fashion. If the level holds, the U.S. dollar could have a relief rally to work off the oversold condition, however a bounce will likely be short lived and the dollar will test and likely fail at that level. The chart below is the weekly price chart of the U.S. Dollar Index......Read the entire article.
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Recent price action in stocks and commodities reinforces the “don’t fight the Fed” mantra. What would our central bank be doing if it were not devaluing our currency, attempting to create inflation, and openly manipulating financial markets through a series of supposedly calculated open-market operations? I do not have any market prophecies; my crystal ball is on permanent vacation. The only certainty that presents itself is that the market pundits, the academics, and the analysts do not know exactly what is going to happen in the future.
We are in uncharted territory regarding government manipulation. We watch as our federal government actively and openly manipulates financial data in an attempt to boost asset prices with the hope that if Americans feel richer they will spend money more freely. What is going to be the catalyst to drive growth when the federal government and the Federal Reserve run out of manipulations?
By now the secret is out, the expected weakening of the U.S. dollar has propelled commodities and stocks higher in short order. The easy trade has likely passed and there are a few warning signs that are being largely ignored by the bullish masses. Business insiders are selling heavily while few are accumulating positions. The banks have not broken out and were under pressure for most of the trading day during Wednesday’s big advance. If the banks do not rally with the broad market, caution is warranted. We are approaching an uncertain period of time regarding earnings and the upcoming elections and we all know that financial markets hate uncertainty.
Additionally, the U.S. dollar is at key support and should that support level fail, stocks and commodities could continue their ascent in rapid fashion. If the level holds, the U.S. dollar could have a relief rally to work off the oversold condition, however a bounce will likely be short lived and the dollar will test and likely fail at that level. The chart below is the weekly price chart of the U.S. Dollar Index......Read the entire article.
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commodities,
Federal Reserve,
J.W. Jones,
The Gold and Oil Guy
Crude Oil Daily Technical Outlook For Tuesday Morning Oct. 19th
Crude oil was slightly lower overnight as it extends the trading range of the past two weeks. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near term.
Closes below the 20 day moving average crossing at 81.24 would confirm that a short term top has been posted. If December renews the rally off August's low, the 75% retracement level of May's decline crossing at 88.07 is the next upside target.
First resistance is the reaction high crossing at 85.08.
Second resistance is the 75% retracement level of May's decline crossing at 88.07.
Crude oil pivot point for Tuesday morning is 82.24
First support is the 20 day moving average crossing at 81.24.
Second support is the reaction low crossing at 75.10.
Why Diversification Doesn't Work
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Closes below the 20 day moving average crossing at 81.24 would confirm that a short term top has been posted. If December renews the rally off August's low, the 75% retracement level of May's decline crossing at 88.07 is the next upside target.
First resistance is the reaction high crossing at 85.08.
Second resistance is the 75% retracement level of May's decline crossing at 88.07.
Crude oil pivot point for Tuesday morning is 82.24
First support is the 20 day moving average crossing at 81.24.
Second support is the reaction low crossing at 75.10.
Why Diversification Doesn't Work
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bearish,
Crude Oil,
moving average,
support
Monday, October 18, 2010
Oil Falls From Two Week High as U.S. Production Drops, Stockpiles Increase
Oil dropped from its highest in almost two weeks as analysts forecast U.S. crude stockpiles swelled to the largest since June amid refinery maintenance and that fuel demand has slowed. Futures retraced some of yesterday’s 2.3 percent gain on expectations that crude inventories climbed 1.5 million barrels last week, according to analyst estimates before an Energy Department report tomorrow. U.S. industrial production fell for the first time since the recession ended in June 2009, according to Federal Reserve figures. Economists had forecast an increase.
“The fundamentals haven’t really improved by a great deal,” said Serene Lim, a commodity analyst at Australia & New Zealand Banking Group Ltd. in Singapore. “Inventories have been on the high range of the five year average so there are substantial supplies.” The November contract lost as much as 42 cents, or 0.5 percent, to $82.66 a barrel in electronic trading on the New York Mercantile Exchange, and was at $82.71 at 12:05 p.m. Singapore time. Yesterday it increased to $83.08, the highest settlement since Oct. 6. Prices are up 4.5 percent this year.
The more actively traded December contract slipped as much as 43 cents, or 0.5 percent, to $83.37. “We’re probably seeing a bit of profit taking today with $83 being a strong resistance level,” said Lim at Australia & New Zealand Banking Group. November oil surged yesterday to as much as $83.28 a barrel after a strike in France curbed fuel supplies. French truckers blocked highways and officials said they would use police to prevent strikers from cutting the delivery of fuel as the standoff hardened over President Nicolas Sarkozy’s plans to raise the retirement age to 62.....Read the entire article.
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“The fundamentals haven’t really improved by a great deal,” said Serene Lim, a commodity analyst at Australia & New Zealand Banking Group Ltd. in Singapore. “Inventories have been on the high range of the five year average so there are substantial supplies.” The November contract lost as much as 42 cents, or 0.5 percent, to $82.66 a barrel in electronic trading on the New York Mercantile Exchange, and was at $82.71 at 12:05 p.m. Singapore time. Yesterday it increased to $83.08, the highest settlement since Oct. 6. Prices are up 4.5 percent this year.
The more actively traded December contract slipped as much as 43 cents, or 0.5 percent, to $83.37. “We’re probably seeing a bit of profit taking today with $83 being a strong resistance level,” said Lim at Australia & New Zealand Banking Group. November oil surged yesterday to as much as $83.28 a barrel after a strike in France curbed fuel supplies. French truckers blocked highways and officials said they would use police to prevent strikers from cutting the delivery of fuel as the standoff hardened over President Nicolas Sarkozy’s plans to raise the retirement age to 62.....Read the entire article.
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Commodity Corner: French Labor Strife, Equities Boost Crude Oil
Ongoing French labor unrest and its effect on the country's refineries and fuel terminals contributed to a $1.83 increase in the oil futures price Monday. Crude oil for November delivery settled at $83.08 as French refinery workers, truckers, students, and others continued to strike in protest of the Sarkozy government's attempt to change the retirement age from 60 to 62. The retirement age increase, which would be fully phased in by 2018, has already been approved by France's National Assembly. The Senate is set to vote on the measure Wednesday, and strikers hope the civil unrest will pressure the upper chamber to kill Sarkozy's pension reform plan.
Strikers have prevented oil tankers from entering the major southern port of Fos Lavera, and all 12 of France's refineries have been shut down. Moreover, the protesters have attempted to block access to fuel terminals. An official with a fuel importers' group said Monday morning that roughly 1,500 of France's 12,000 retail fuel outlets have exhausted their supplies of some or all types of fuel. Also having a bullish effect on oil Monday were rising equities markets, with the Dow Jones Industrial Average and S&P 500 each closing up more than 0.7%. Crude oil traded within a range from $80.35 to $83.08 Monday.
The price of a gallon of gasoline also surged, thanks to many of the issues affecting crude oil. Front month gasoline settled a nickel higher at $2.15 after fluctuating between $2.09 to $2.155. Thanks to a mix of abundant inventories and underwhelming demand as traders continue to await cold winter weather, November natural gas fell 10.4 cents to settle at $3.43 per thousand cubic feet. Gas traded from $3.44 to $3.53.
Courtesy of Rigzone.Com
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Strikers have prevented oil tankers from entering the major southern port of Fos Lavera, and all 12 of France's refineries have been shut down. Moreover, the protesters have attempted to block access to fuel terminals. An official with a fuel importers' group said Monday morning that roughly 1,500 of France's 12,000 retail fuel outlets have exhausted their supplies of some or all types of fuel. Also having a bullish effect on oil Monday were rising equities markets, with the Dow Jones Industrial Average and S&P 500 each closing up more than 0.7%. Crude oil traded within a range from $80.35 to $83.08 Monday.
The price of a gallon of gasoline also surged, thanks to many of the issues affecting crude oil. Front month gasoline settled a nickel higher at $2.15 after fluctuating between $2.09 to $2.155. Thanks to a mix of abundant inventories and underwhelming demand as traders continue to await cold winter weather, November natural gas fell 10.4 cents to settle at $3.43 per thousand cubic feet. Gas traded from $3.44 to $3.53.
Courtesy of Rigzone.Com
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Stock Market and Commodities Commentary For Monday Evening Oct. 18th
The U.S. stock indexes closed higher today and hit or are near fresh multi month highs. The stock index bulls have the overall near term technical advantage as price uptrends are in place on the daily bar charts. Stock index bulls have been very pleased with price action so far this autumn a time which is normally not favorable to market bulls. My bias is that prices will trade mostly sideways, but with a slight upside bias, into the end of the year.
Crude oil closed up $1.86 at $83.11 a barrel today. Prices closed near the session high today. Trading has become choppy and sideways at the higher price levels. The next near term upside price objective for the bulls is producing a close above solid technical resistance at the October high of $84.43 a barrel.
Natural gas closed down 11.8 cents at $3.417 today. Prices closed near the session low and hit another fresh contract low today. The bears have the solid overall near term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at $3.80.
Gold futures closed up $0.40 at $1,372.40 today. Prices today closed near the session high after being under profit taking pressure early on. Once again, bargain hunters stepped in to buy weakness in the gold market. The U.S. dollar index backed off its earlier highs today and that also allowed gold prices to move up from daily lows. The gold bulls still have the solid overall near term technical advantage. Prices are still in a 2 1/2 month old uptrend on the daily bar chart.
The U.S. dollar index closed down 10 points at 77.16 today. Prices closed nearer the session low today. Bears still have the solid overall near term technical advantage, as the bulls today could show no follow through strength from gains seen on Friday. There are still no early clues to suggest a market bottom is close at hand.
Today’s Stock Market Club Trading Triangles
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Crude oil closed up $1.86 at $83.11 a barrel today. Prices closed near the session high today. Trading has become choppy and sideways at the higher price levels. The next near term upside price objective for the bulls is producing a close above solid technical resistance at the October high of $84.43 a barrel.
Natural gas closed down 11.8 cents at $3.417 today. Prices closed near the session low and hit another fresh contract low today. The bears have the solid overall near term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at $3.80.
Gold futures closed up $0.40 at $1,372.40 today. Prices today closed near the session high after being under profit taking pressure early on. Once again, bargain hunters stepped in to buy weakness in the gold market. The U.S. dollar index backed off its earlier highs today and that also allowed gold prices to move up from daily lows. The gold bulls still have the solid overall near term technical advantage. Prices are still in a 2 1/2 month old uptrend on the daily bar chart.
The U.S. dollar index closed down 10 points at 77.16 today. Prices closed nearer the session low today. Bears still have the solid overall near term technical advantage, as the bulls today could show no follow through strength from gains seen on Friday. There are still no early clues to suggest a market bottom is close at hand.
Today’s Stock Market Club Trading Triangles
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Top Oil Stock for $80 Oil
Stephanie Link, director of research for TheStreet, reveals her diversified energy portfolio and the number one oil stock to buy.
Create a FREE Stock Portfolio, And get your stocks trend analysis in your inbox....Daily!
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Create a FREE Stock Portfolio, And get your stocks trend analysis in your inbox....Daily!
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The Street
Phil Flynn: Ben's Bubble!
There is no doubt that Ben Bernanke can inflate the commodity bubble and at the same time let some of the air out. Ben Bernanke has somewhat disappointed commodity bulls by not being more forthcoming about the size and the scope of the next round of quantitative easing. While today the Wall Street Journal is raising legitimate concerns about the potential backlash from his policies due not only to rising commodity prices but also the surge of investment in some emerging markets.
The Wall Street Journal writes, “The Federal Reserve's latest effort to juice the U.S. economy is making many investors in emerging-market and commodity-producing nations confident the rally has longer to run. Others see trouble ahead, concerned too many investors are jumping into the rally and that these markets can't keep raising if the U.S. economy stays sluggish.” Already this year a record $60 billion has gone into emerging-market stock and bond funds... and investors expect another $500 Billion...”. The question becomes what will happen if investors run for the exits at the same time. Commodity inflation is now thought to be......Read the entire article.
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The Wall Street Journal writes, “The Federal Reserve's latest effort to juice the U.S. economy is making many investors in emerging-market and commodity-producing nations confident the rally has longer to run. Others see trouble ahead, concerned too many investors are jumping into the rally and that these markets can't keep raising if the U.S. economy stays sluggish.” Already this year a record $60 billion has gone into emerging-market stock and bond funds... and investors expect another $500 Billion...”. The question becomes what will happen if investors run for the exits at the same time. Commodity inflation is now thought to be......Read the entire article.
Every Once in a While, You Find Something Amazing....Check out Trend TV
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Ben Bernanke,
economy,
Phil Flynn,
Wall Street
SP 500 & Natural Gas Short Term Trend Charts
The broad markets along with metals have been on fire but in the last two weeks we have seen the sentiment become stronger. The extreme bullishness we are seeing has made it difficult for low risk swing traders to get in on the action simply because there have not been many sizable pullbacks. Instead the prices have been inching their way higher with very minor pullbacks before surging again.
The only way to take advantage of this type of price action in order to keep risk low is to take small positions when the market drops to the 5, 10 or 14 moving averages with a mental stop to exit the position if the market closes below the 14ma. Any position take up here should be small because the market is in runaway mode, meaning everyone is buying on the smallest of dips. The largest moves tend to be near the end of a trend which is why I feel this market could keep running for a few more weeks before taking a sharp plunge.
Natural Gas
If you have been reading my work over the past year you should know I don’t like natural gas. More people have lost money trying to play natural gas than any other investment vehicle out there which is why I don’t cover it very often. Many of you have been asking about Natural Gas (UNG) so here are my thoughts on it.
UNG has been in a down trend for several years and the only trades should be short positions at this time. The argument from some is that it’s undervalued and with winter just around the corner prices should go up. It’s a valid argument but price action is what makes traders money, not fundamentals.
The daily chart of Nat Gas below shows what I feel is about to happen. Remember, UNG is a terrible fund to be buying. Unless natural gas is moving strongly in your favor, this fund continually loses value simply because of the way its created.
Looking at the actual natural gas commodity chart is a different story… The trend is still down, but it does look as though it’s trying to form a base when looking at a 3 year weekly chart. That being said, there is still a very good chance we see gas test near the $3 level before starting a new trend so trying to pick a bottom here is not something I would be doing.
Trading Conclusion:
In short, the equities market is still in a strong uptrend. I’m not comfortable taking any large positions at this stage of the game but if we get a setup I will not hesitate to enter with a little money.
As for natural gas...trying to pick a bottom is deadly in a down trend as bounces tend to be short lived or flat. I will cover the dollar, gold, oil and the market internals in the member’s pre market morning video....
Just Click Here to get my daily ETF Trend Newsletter in your email inbox.
Happy Trading,
Chris Vermeulen at The Gold And Oil Guy.Com
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The only way to take advantage of this type of price action in order to keep risk low is to take small positions when the market drops to the 5, 10 or 14 moving averages with a mental stop to exit the position if the market closes below the 14ma. Any position take up here should be small because the market is in runaway mode, meaning everyone is buying on the smallest of dips. The largest moves tend to be near the end of a trend which is why I feel this market could keep running for a few more weeks before taking a sharp plunge.
Natural Gas
If you have been reading my work over the past year you should know I don’t like natural gas. More people have lost money trying to play natural gas than any other investment vehicle out there which is why I don’t cover it very often. Many of you have been asking about Natural Gas (UNG) so here are my thoughts on it.
UNG has been in a down trend for several years and the only trades should be short positions at this time. The argument from some is that it’s undervalued and with winter just around the corner prices should go up. It’s a valid argument but price action is what makes traders money, not fundamentals.
The daily chart of Nat Gas below shows what I feel is about to happen. Remember, UNG is a terrible fund to be buying. Unless natural gas is moving strongly in your favor, this fund continually loses value simply because of the way its created.
Looking at the actual natural gas commodity chart is a different story… The trend is still down, but it does look as though it’s trying to form a base when looking at a 3 year weekly chart. That being said, there is still a very good chance we see gas test near the $3 level before starting a new trend so trying to pick a bottom here is not something I would be doing.
Trading Conclusion:
In short, the equities market is still in a strong uptrend. I’m not comfortable taking any large positions at this stage of the game but if we get a setup I will not hesitate to enter with a little money.
As for natural gas...trying to pick a bottom is deadly in a down trend as bounces tend to be short lived or flat. I will cover the dollar, gold, oil and the market internals in the member’s pre market morning video....
Just Click Here to get my daily ETF Trend Newsletter in your email inbox.
Happy Trading,
Chris Vermeulen at The Gold And Oil Guy.Com
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Chris Vermeulen,
equities,
gold,
Natural Gas,
UNG
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