November 2011
8 posts
Bold Prediction Nailed, Initiating Bullish Position in Natty!
The title pretty much says it all. On September 30th, we made a bold prediction that Natural Gas Futures would print 3.25 by the end of 2011. It seemed a bit lofty, but we had valid reasoning and followed through with it.
As mentioned in the bold prediction post, we planned to start positioning in Natural Gas in the event our prediction came to fruition. Today’s low of 3.326 put Natty eight cents away from our predicted price. More importantly, today’s low resulted in an official fill of the October 27, 2010 bull gap (gray oval).
We see this price level as opportunity to ease into some bullish positioning in UNG. UNG is a p.o.s. by nature, but this gap fill coupled with strong support at 3.25 should result in a quick pop in natty so a quick trade in UNG is worth a shot.
Here’s a look at UNG:
Take a look at the Dec 7/8 Bull Call Spread and/or UNG Covered Calls using Dec 8’s.
Unfair & Unbalanced
Per ‘60 Minutes’ last night, Congress & Senate are exempt from insider trading rules & regulations. Basically, these are the people in power that are privy to market moving information prior to it being released to the public, and they are allowed to profit off it.
An example they provided was Nancy Pelosi being granted the ability to buy 5,000 shares of the Visa IPO, which went up 20 points in a matter of days. Coincidentally, there was a huge bill being passed around the House pertaining to more stringent credit card regulations. As the Speaker of the House, Pelosi has obvious power and influence on these types of things. Getting into an IPO is not a walk in the park, but conveniently it was for her. Sound a little “bribe-ish”?
“Common folk” risk prison and large fines if proven guilty of insider trading, yet Congressmen and members of the Senate may profit off of privileged information without even a slap on the wrist. That’s complete bullshit.
Want to do something about this? Send your Rep a letter supporting “Bill H.R.682: Stop Trading on Congressional Knowledge Act”. With a strong effort, we the people can restore a fair & balanced tone to this atrocity.
Don’t even get me started on the “Political Intelligence” groups that are gathering privy information and legally selling it to hedge funds and the likes…
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