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Valyooo (99.64)

An interesting chart (DragonLZ, you may like this)

Recs

11

January 22, 2011 – Comments (9) | RELATED TICKERS: NGS , CHK

I was reading through the traders almanac, and it says Natural Gas is bullish in February, which also coincides with the fundamentals (low oil to gas price ratio, and a lot of producers producing below cost which can only be a temporary phenomenon), and the chart which shows a golden cross.  There is no good ETF for gas (UNG is worse than aids) so I decided to look at the companies.  A lot of the time, underlying commodity prices do not coincide to immediate rise in prices.  So, I looked at a bunch of charts and came across an interesting one. http://www.google.com/finance?q=ngs 

(I am not sure how to show pictures in the blog, just the link).

If you look, in the 7 years this stock has been around, 6 of those years(85.7% of the time) if you bought it on Feb 1 and sold it on June 1 you would make a profit.  I know a lot of people will see this as a nonsense coincidence, but look at all of the catalysts that could make this thing work.  When the technicals align, there is usually a fundamental catalyst that shoots it higher, and I think NGS can be a big winner.  Unfortunately, options are no good for this because the volume is too light and the premiums are expensive.  But it could still rip like a 20% gain.

9 Comments – Post Your Own

#1) On January 22, 2011 at 6:54 PM, Valyooo (99.64) wrote:

Disclosure: just picked some shares up, plan to sell around June 1.

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#2) On January 23, 2011 at 1:52 AM, Mstinterestinman (27.04) wrote:

MCF is my fave play in this space.;

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#3) On January 23, 2011 at 2:42 AM, HarryCarysGhost (99.76) wrote:

Hey Valyooo run it through this-

http://www.freestockcharts.com/

Some stocks that I made some money on in the natty gas sector- AAV,EROC,NRGY (but I bought at the lows so not sure if thats helpful)  

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#4) On January 23, 2011 at 5:45 PM, dragonLZ (99.68) wrote:

Valyooo, very interesting. I would never picked up on that pattern.

I do, however, have NGS marked in my book as a possible play for a while now, not only as a short term, but a long term play as well.

I wouldn't be surprised if in 2011 NGS gets over its 2008 high of $30.

Good Luck. 

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#5) On January 23, 2011 at 7:44 PM, Valyooo (99.64) wrote:

Harry,

Cool website, but what exactly should I run it through

Speaking of running through, Rodgers did tha to the Bears today (sorry I had to :) )

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#6) On January 23, 2011 at 11:21 PM, HarryCarysGhost (99.76) wrote:

Just type in ngs, according to the last chart it would be a buy until it hits the green line.

Fine kick a man while he's down, now if you'll excuse me I'll resume the fetal posistion :)

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#7) On January 23, 2011 at 11:48 PM, Valyooo (99.64) wrote:

Its all good, jets broke my heart

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#8) On January 24, 2011 at 12:03 AM, Momentum21 (96.40) wrote:

There is no good ETF for gas

 FCG is worth a look

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#9) On January 24, 2011 at 1:22 AM, Valyooo (99.64) wrote:

Nice find momentum!

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