UGAZ Nat Gas Leveraged ETF +5% in our Friday Trade
Last week we noted our 5.6% trade in the SPDR S&P Biotech ETF (XBI). We continued to be bullish on the XBI, and had a target of 79-80.
This week the XBI met our target and then some, reaching 80.89 before closing the week at 77.18.
There's a risk down to the recent upside breakout in the 73-71 area at some point, which, if it contains the weakness, could provide the launchpad for a thrust towards 100 in the very big picture.
Another sector we follow closely is Natural Gas. On Tuesday of this week we told our members to watch for movement off of Wednesday's release of weekly Nat Gas inventories.
We noted that the release could trigger a downside stop-fest that presses Nat Gas back under 3.00, into the 2.90 area support, where my work argues in favor of establishing or adding new long positions ahead of upside potential again into the 3.30-3.40 target zone.
On Wednesday's release, Nat Gas initially popped to challenge June resistance at 3.10-3.11, but stalled there and a bit later in the session pivoted to the downside into a nosedive that violated nearest term support at 3.066.
As it dropped towards our preferred support area, we added a position in the VelocityShares 3x Long Natural Gas ETN (UGAZ) on Friday at 13.17. By the close, the UGAZ was at 13.82, giving us a +5% yield on our trade for the day.
Have a great weekend!
More Top Calls From Mike
On Monday morning, November 13, 2023, a full 5 trading sessions before the approaching November Options Expiration (OPEX) (11/17/23), I posted my chart-based commentary for our members:SPY-- Considering that Friday is November Option Expiration, where are the "magnetized strike prices" as we start OPEX week? Based on my attached Hourly Chart, the magnetized strike price zone spans from 436 to 441. Should SPY take out the upside barrier of 441, then the follow-through outlier magnetized target could be as high as 450 before or on Friday.
On October 23, 2023, ten days before the November 1st FOMC meeting and policy statement, I posted the following commentary about the downward-spiraling TLT (20+ year T-bond ETF):My attached 4-hour Chart of TLT shows that the relentless and near-vertical downtrend that commenced at the beginning of August from around 100 hit a new long-term low at 81.92 this AM, positioning it in my intermediate-term optimal downside target zone from 80 to 82.
On the afternoon of September 25, Mike Paulenoff posted a warning signal to MPTraders members about the developing acute oversold condition in RTX (formerly Raytheon Technologies), writing:"RTX (formerly Raytheon Technologies) hit a new multi-month corrective low of 71.02, down 33% from the 4/10/23 post-pandemic High at 106.02. Although RTX has violated my optimal target window of 73-75, the stair-step corrective pattern off of the 4/19/23 high at 104.
On October 3, Mike Paulenoff posted the following "Heads Up!" about GLD (SPDR Gold Trust, ETF) for MPTrader members: "GLD has pressed to an important technical inflection window from 169.50 down to 166.30, from where I will be expecting corrective downside exhaustion off of the 5/04/23 high at 191.36, and new buying interest. From a nearer-term perspective, given the acute oversold but CONFIRMED Momentum reading of 17.16 an hour ago, my preferred scenario argues for another loop down that marginally violates today's low at 168.
On September 28, 2023, with NVDA trading at 429.31, I told MPTrader members that my work is warning me about a complex technical setup that argues for a prolonged corrective scenario prior to a resumption of dominant uptrend strength. I posted the following:My near-term pattern and momentum work argue that since its 9/21/23 corrective low at 409.