UNG Update

UNG is still one of my favorite long term long positions, its an ideal hedge for shorts and an ideal position for those looking for a position that they can just put in the portfolio and put it away without much maintenance. UNG also happens to have a very high profit potential, in fact so high that UNG may start its own bull market or in fact be one of the leaders of the next bull market whenever (or if) that comes along.

UNG reamins in an excellent add-to position or a new long position as it is still in a large stage 1 base, stage 2 is mark-up or what most call the bull market trend so I'd support adding to or initiating a new position in UNG at these levels. Today's action was a gap fill within the reversal process, which is now large enough that I feel fairly confident that this is the accumulation stage that is specifically in place to make the breakout from stage 1 to stage 2-the long term accumulation has been done for some time now.

 In yellow was a 5+% day that we took profits on, at least 25% in my case-who takes profits on a 5% move that breaks out above resistance?

Someone with an edge that can see what the underlying smart money trade looks like. We took profits in UBG on a strong price move, but weak underlying institutional move that was followed the next day by a pullback, so not only did we keep profits, but entered UNG at lower prices because we can see something more than just price action.

Technical Analysis would tell you to buy on a day like this.

 The reversal process, the more accumulation, the stronger the upside move and the only upside move we have left is a breakout to stage 2 mark up.

 Intraday today gapped up and then filled the gap-nothing bad, just more accumulation.

60 min 3C chart shows the distribution on the 5+% day we took profits on and we re-entered at the lows where accumulation took hold.

 The more detailed, but still exceptionally important 15 min chart with two head fake moves to the upside, both with distribution and a current leading positive divergence. Ironically price is about as quiet as can be right now, but the underlying trade is about as busy and bullish as can be, but you could never tell that form price or even price and volume alone.

 3 min chart is obviously backing up the charts above.

As is the 1 min and 2 min (not pictured)