Thursday, March 3, 2016

[UGAZ] update

Another busted model on UGAZ this AM stopped me out again.

The next opportunity is per below.  The model below is log scale and included extended trade data.  I suspect that it will begin to nose downward into capitulation as shown and we will end up with a nice unicorn tail here.  If you see this begin to move downward like this do yourself a favor and don't be too afraid.

 This will find a bottom soon and when it does it will be like GLNCY was: it was cut in half into a unicorn tail and then doubled within a few trading days.  Again, a capitation bottom is a buy signal here.  No, natural gas will not keep going down forever.  Yes, when the reversal comes it will be like the junior miners: the shorts will cover big time.  None of this price action is economic, it's all just leveraged gambling.  When enough shorts pile in here fearless, natural gas will blow up in their faces.  Remember when that ignorant WSJ twit called gold a pet rock?  I had a feeling that he would be sorry about that.

Well nat gas ain't no pet ghost.  It's a valuable commodity.  I have a nat gas outdoor grill and nat gas stovetop and I love it. The cure for low prices is generally low prices.  Look for a bottom as early as Friday and as late as Monday. 

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