Natural gas and general market updates
$ProShares Ultra Bloomberg Natural Gas (BOIL.US)$ From my last 2 posts as suspected, after natural gas hit its stong support near $8 we should get a nice bounce. Looking extremely positive as we are seeing the bounce happening. Currently it is trading at $9.43 in PreMarket. I expect to see it bounce to 10.80 to 11. I will probably sell 50% at that level and let the balance ride. Potential high would be around 12~15 if we are lucky.
Yesterday we also saw big cap companies bounce. However it was disappointing the bounce was very weak during trading hours and saw many of then reverse down again during post market session. Hopefullly we see better bounce today, but be careful, once the Fed cuts the rate, more bigger corrections would be expected. I would be cautious with large cap stocks. Any trades should be very short term in and out take profits type trades. Smaller to mid cap stocks would be more attractive and should react positively with Fed rate cuts.
Other sector to keep an eye on is precious metals. I have been DCA accumulating gold and gold miners for last 12 months. watch out specially the miners, it could get an explosive upside in September and forward. It normally have very strong movements during interest rate cut cycles. 2 main ETF I accumulated are GDX and GDXJ. World largest miner is NEM just for your reference. Other quality miners are GOLD and AEM. All these 3 miners are part of GDX ETF holdings. Silver should also do well eventually catching up to gold. SLV and SILJ.
Good luck to all. Cheers
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Retailers must include gold in their portfolio during rate cut cycle and economic slowdown. Consider NEM, GDX, GLD, GDXJ
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