Don’t Tell My Wife About This Trade

Natural gas is extremely oversold, but the conditions now make it a great trade setup… [Jeff Clark's Market Minute]( Don’t Tell My Wife About This Trade By Jeff Clark, editor, Market Minute On Wall Street, natural gas is known as the “widow maker” trade. That’s because the price action is so erratic. It doesn’t seem to conform to any rules of fundamental or technical analysis, so trading natural gas often feels like fending off death. In my house, the “widow maker” might become the literal definition. That’s because the last time I traded natural gas my wife threatened to kill me if I ever did it again. Gabriela didn’t appreciate that a foul-mood demon had taken over her husband’s personality. So, once I bailed out of the trade, she encouraged me to avoid trading natural gas in the future. Please don’t tell her. But I’m back in the widow maker trade. I can’t help it. I’m a trader. When I see an extreme setup, I have to jump on it – even if it might kill me. Right now, natural gas is extremely oversold – just as the seasonal patterns are turning bullish. Recommended Link [AI Panic Coming on August 1st?Â]( [image]( Legendary trader Tom Gentile has just issued [this critical warning for August 1st.]( Billionaires like Warren Buffett and Bill Ackman have already started to prepare. Something big is happening… And if you don’t prepare now, you could end up losing a big chunk of your savings in the coming days… And spend years just trying to catch up. [Click here now to get the details before it’s too late.]( -- Natural Gas Is About to Snap Back You see, for whatever reason, the price of natural gas tends to rally in the summer. It did last year – when the price went from $2.20 in June to $2.90 in August. In the summer of 2022, natural gas rallied 70%. It gained nearly 100% between June and August in 2021. So, it seems to me the odds favor a rally this year as well. Remember though, this is the widow maker. It’s tough to trade. And so far, anyone betting on a rally in natural gas this summer is in a world of hurt. The price is down 30% over the past month. Take a look… [(Click here to expand image)]( Natural gas is trading more than 20% below its 50-day moving average line. That’s an extreme move. The proverbial rubber band is quite stretched below the line. While extreme conditions can get even more extreme, it looks to me like natural gas is setting up for a “snap-back” rally. I wasn’t interested in buying natural gas last month, despite its strong seasonal tendency to rally in the summer. The price was too far above its 50-day moving average. The rubber band was stretched too far to the upside. It seemed unlikely that natural gas could rally much more. So, it was a poor risk/reward setup. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Now though, with natural gas in an oversold condition, there’s plenty of room for the widow maker to rally if the seasonal bullishness kicks into gear. A move back up to the 50-day MA would yield a 30% gain. A rally back up to where it was trading last month would be 50%. Meanwhile, in its current oversold condition, if natural gas keeps falling it is likely to find support near the April low at about $1.80. That would be a loss of 10%. That looks like a good trade setup to me. Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](