Friday, February 12, 2016
[UGAZ] update
In the backlink I was looking for a bottom some where between $1.30 and $1.39 but the shares didn't do anything definitive into the close. It's possible that they bottomed mid day but since the shares did make it to a lower low than the low of Feb 3rd we have to know this is not wave 2 up of a new bull. This was more like wave 5 down or most of it down. It might in fact only be w3 of red 5. This will either break out of the down trend on the next trading day (Tues since Monday is president's day) or it will do 5 more small waves down to $1.20. I'm carrying a small position of this over the weekend but will be looking to add to it with a larger portion if we get a definitive breakdown of the support shelf.
Bought a second position of UGAZ at 1.19.
ReplyDeleteThanks Captain.
I like to wait until end of day to buy something that is selling into a 5th. This has potential down side to 1.07 according to my current model but then I will be back in. I see that the Ruskies and OPEC are talking about limiting production of oil and gas. Not that I think this matters because they always cheat anyhow. The best way for production to decrease is for someone to go BK and take their supply offline because it was not economically viable to keep selling each BTU at negative margin.
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