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NatGas Play

Natural Gas made a rally today that triggered the divergence buy signal on the daily chart:


This is the scenario using eSignal chart (I don't have real-time feed on eSignal for NG but uses the above chart for trading instead):


This is an early entry on the daily chart and the follow-up entry on the weekly chart since I already posted a weekly chart bottom-picking entries comment back in Oct 2010 that fortunately worked.  The daily chart is the much awaited consolidation phase after the Oct 2010 initial run up.  Unfortunately, the rally from the 3.25 bottom is more probably an A-wave rather than an impulsive 1-2-3-4-5.

The weekly chart should be:


So, the NG Bulls have a timeline of March 22, 2011 that they must beat and rally hard above 5.011 level in order to have a fair chance to transform the A? B? C? label into a i-ii-iii-iv-v rally with 6.49 to 7.97 Target Range.


For the equity traders:  I bought some more  YM and SSO after-lunch today (in addition to those bought last March 2 as a swing trade to the upside using the Very Short-Term Scenario) since SSO and YM have an a-b-c run down look on their 15min ET and 30min 24-hour charts respectively with today as the c-wave down:


Use hard stop loss or trailing stops in order to prevent potential massive loss of capital in case the markets decide to go into a meltdown instead.  Specially since today is the first Monday Meltdown that happened after a series of Rally Mondays for a long long time (not counting the President's Day Monday Meltdown since it was a holiday).