Thursday, June 4, 2009
Huge Reversal in Natural Gas
After what appeared to be a very bearish Nat Gas inventory report this morning, Nat Gas (UNG) plunged. Notice though that it hit right around the recent lows and rallied hard. This huge reversal is usually a bullish signal that the shorts are out of ammo. It signals the all clear sign for longs and provides a nice tidy point for a stop loss. Notice the highest volume for the month on this ETF as well.
Unfortunately we bought shares in the Growth and Hedged Growth funds yesterday instead of today. Even with the wild price swings our funds are up 2% on this position. Glad we didn't spend much time viewing them in the morning (down 10% might have depressed us).