It's a Gas

I'm still trying to shake off a cold today, but glad to be back with my trading compadres today. If I’m a little “off,” than my normal self it’s because as Squiddy said, I’m in a state of pseudophedrine-induced psychadellia, not that it makes any difference. ;-) What I really am enjoying is how quick this group is to adapt to the tape, no matter what they hand us on any given day. We are six trading days away from OPEX now, so we can expect several of those days to possibly theta burn finales... just something to keep in mind. DDT posted an excellent point elsewhere last night about all the bells and whistles in the world, and how we’re constantly looking for the holy grail of TA, when risk management is the only thing that matters in the big scheme of things. How did he get so smart? ;-)

The hot topic after the Nat Gas report is the big run up we're watching in that commodity, and for a look at stocks specific to Nat Gas if you don't trade futures, I've put together a list for you here. Geez we spoil you guys around here, but you're worth it. The UNG chart has a nice look to it, but it still needs to clear resistance which would give a good area for a stop on any retreat as well.

Other than that, the buck is hanging in here today and resting on horizontal support, but volume has been decreasing in recent sessions, so that's something to keep an eye on. It appears that the 100 EMA you'll see on my chart will be a bit of a hurdle, only time will tell. When you consider the move it had to make to breakout, a little rest here and there is to be expected. Also mentioned in conversation is the tightening of the Bollinger Bands on the daily charts for the indices, so I've also added the Bollinger Band Width indicator on a daily chart to give you visual idea of how tight they are in comparison to times past. Economic news tomorrow will include Retail Sales at 8:30, followed by Consumer Sentiment at 9:55 and Business Inventories at 10 sharp. Good trading everybody!

Classical Gas