KOLD Has Proven Weakness
Since November 4th — She don yet?!
Since November 4th NatGas has rallied into weakness. KOLD as persisted lower despite weakness. Why?
Why?
NatGas is labeled “the Widowmaker” for a reason. She must prove weakness over and over to herself (her Market’s Traders) before she’ll reverse. She persists despite weakness before every reversal.
For this reason a trader of NatGas in BOIL or KOLD must understand waves and weakness, otherwise labeled Price-Indicator Disagreement. And a NatGas trader should consider trading WITH the shorter term 5-7 day legs before taking the larger position sought. Which in this case is Point E (end of a consolidation) of Wave 4.
We’ve be positioning for Point E of Wave 4 in KOLD for the money-ball — Wave 5 of BOIL’s downtrend. It’s ultimate last leg down for the impending Winter.
The better trade because of WHO NatGas IS, “the Widowmaker” pain in the arse that she is, and to avoid a significant drawdown is to trade BOIL to Point E.
Oh, Thanks, Charlie. Little late.
If you were in KOLD early, Forgive yourself. BOIL and KOLD characteristically have long legs, the end of which are hard to pinpoint. Whooph has learned to Fade in Slow or trade “the other of the ETF pair” in the shorter-term.
