Friday, October 29, 2021

#NaturalGas Review $UNG #NG_F

Natural Gas Review
Those that view the message of the market on a daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bag holders of trend transitions.

Natural gas's overall trend, revealed by trends of price, leverage, and time, are defined and discussed in The Matrix for subscribers.

Subscriber Comments

Natural gas ($UNG) Reset (R) 4 days ago. It's phase code column shows R+4. $UNG is down 5% since the Reset. What's wrong with NG? The short answer is nothing. Welcome to the Jungle of rising volatility that I warned years ago was coming to all assets.

Volatility and uncertainty are rising fast (geometrically) across all assets (see chart below). Natural gas, an extremely volatile asset in 'normal' times, will buck like a wild bronco within this backdrop. Please be warned, prepared, and listen to the Evolution of the Trade (EOT).

NG's primary trend has been up for 5 months and 47%. The primary trend Flip (F) establish the core long position. The backdrop of rising volatility translates into smaller core long positions. Resets are opportunities to escalate the core positions, especially if profit-taking reduced it. They do not establish the core position, ever!

Long Term Stock Market & Volatility

Watch the experts flip-flop on NG. Volatility without a solid understanding of the primary trend, cycles, and energy will turn bulls into bears, and vice versa overnight. This is not going to happen with the EOT.

Is Natural gas a train wreck waiting to happen?

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