Trade Alert: UNG

I missed the boat on United States Natural Gas Fund UNG, when it was at 41. This is what happens when construction foremen have no regard for the market. So what to do now? First as with GLD, SLV, and USO ignore the momentum indicators such as stochastics. After the establishment of a powerful trend, the data will bias the indicator in the direction of the trend. Now you wont get this in books, but I think the pegged condition of the indicator is simply confirmation that the trend still has momentum. In other words before the trend breaks the indicator will alert you by it's less severe condition. The chart of UNG you see here has no stochastic or even moving averages. Just look at the W formed by the double bottom at 35 in September and again in December. The middle of the W was in November at 45. You can see that 45 was resistance, which has now been broken confirming the W. For a trade it means that this is a good place to enter with a 1/4 position and a stop at or just under 45.