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Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
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  • Intraday Market Notes: Gas Up Your Profits! -- Oct. 1 0 comments
    Oct 1, 2012 4:39 PM | about stocks: UNG, BOIL, UGAZ

    3:30 pm ET: Better than expected manufacturing data gave an early boost to the market but the ebullience quickly wore off as the major averages began to plunge. What appeared to be a treat instead turned into a trick--is Halloween coming early this year? The Dow Industrials were up over 160 points in early morning trading but it rapidly shed one hundred of those points (don't you wish losing weight was that easy?). With a half an hour before the close, it appears that the Dow Transports (DTX)--a leader in near-term market direction--as well as the Nasdaq will be closing in the red.

    The internals are also showing an increase in bearish sentiment marked by a rising VIX (volatility index) along with a rising Trin. Today's highly negative VWAPs indicate institutional selling with Apple (NASDAQ:AAPL) topping the negative list (at one point it's VWAP was -1100!). None of this should come as good news for you bulls, and if you're still long, perhaps taking out some put insurance would be a prudent move.

    Trade Note: Gas up your profits!
    The nat gas exchange traded fund (NYSEARCA:UNG) broke $22 resistance today on heavier than normal volume. Although analysts still project a glut in long-term nat gas supply (in this country), a rise in short-term demand due to unseasonably cooler temperatures forecast for the Midwest is expected to put pressure on current supply. Today, the UNG was up over 4% while the double levered fund (NYSEARCA:BOIL) and the triple levered fund (NYSEARCA:UGAZ) were up 9% and 13% respectively. Traders with a speculative edge may wish to jump on this breakout for a short-term trade. (Please note that these are all futures-based funds that come with a healthy serving of risk so please only use discretionary funds for this trade. Remember that what zooms up can just easily plunge right back down.)

    Note to Subscribers: There is one new Stock Darling.

    Stocks: UNG, BOIL, UGAZ
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