That's the Discipline

Even though I am still inclined to be a natural gas bull into the winter months, the sharp sell-off in recent sessions is a good reminder to always place discipline first in trading. Recall that I sold my UGAZ long into strength last week, as the UNG ETF (UNG is the straight-up natural gas ETF, UGAZ is the triple-levered long one) rallied direction into prior resistance (horizontal purple line, below on UNG daily chart). Since then, those continuing to hold UGAZ have had to endure unnecessary pain. Currently, UNG is back below $22, a level I initially wanted to see hold as support. If that 20-day moving average (orange line) fails to hold, I am hand-off of natty for a while. However, if bulls can step in early this week another long trade may be in play back over $22. It may not be too flashy or fun. But that's the discipline required to trade the leveraged ETF products. _______________________________________