Natural Gas Supply (Update)
NG Supply Persists, Outstrips Demand
NG Supply Persists, Outstrips Demand
Excess Production
Natural Gas (NG) supply is the story here. As NG production remains high per EIA reports, on top of the already high supply, NG prices have no where to go but down. We capitalize on this supply-demand story with a 4-hour period chart corroborating our swing trade position.
Although we would rather be building a long Natty Gas position, moving into the fall and winter demand season, it looks like KOLD is the play. KOLD is an ETF which can be used to short Natural Gas.
Whooph’s Method
In the chart below you can see Price and Indicator are in agreement to the upside in KOLD, while a pull-back in Price we waited for now presents.
Our trigger to BUY the KOLD etf involves a pull-back in Price and Stochastic. The example chart is showing price is pulling back to the 38 ish level, while Stochastic pulls back to the 25. This level above 25 leaves Stochastic in the Upper Operating Area (UOA) which is bullish KOLD. This Stochastic UOA which is indicative of strength to the upside in etf KOLD is corroborated by Price and Indicator up-sloping in agreement.
Whooph’s UOA Trick
Whooph defines bullish UOA for Stochastic in the 25 to 100 range. If Stochastic turns up and fails to occupy the 0-25 zone, we’re golden. The confirmed UOA is predictive of continued upside. The long position then becomes a “safe hold” as it were, at least while Stochastic heads north towards 75 and occupies the 75-100 zone.
And of course, the same construct would show Stochastic in the Lower Operating Area (LOA) or 75 to 0 range, to signify a bearish outlook for BOIL, the etf we would otherwise use to be long in Natural Gas.
George Lane’s Stochastic
Analysts insisted and reiterated that market price used in calculating your Stochastic oscillator are derived from historical data!
George Lane explained for the agitated analysts the assertion why his Stochastic oscillator issues signals which can foretell market movements:
Price has momentum.
Stochastic does not.
Lane turned and walked out, leaving them flummoxed. No one dared to ask him again.
Whooph averages 118% annually TWA.



