05Nov10:26 amEST

Forever Elusive

It almost seems poetic that natural gas, after years upon years of endless new lows and failed rallies, would truly improve from a technical perspective and grow stronger by the month as equity markets look as shaky as they have in quite some time. Forever elusive, indeed. 

On the UNG daily chart, below, which is the ETF for the commodity, note this morning's explosive gap higher, up and out of the smart, benign consolidation within the context of a fresh upturned. UNG has been a steady long watchlist idea for Members, and Friday's upside reversal from what looked to be a rough open was truly impressive headed into the weekend. 

Going forward, we are looking to gauge whether the likes of natural gas and its related stocks (CHK LNG RRC SWN, just to name a few) can hold rallies even if the broad market remains corrective. Similar comments apply to Brazil on the back of the Bolsonaro election, by the way.

As for the tape at-large, another AAPL downgrade seems to be wreaking a bit more havoc on tech and now perhaps the broad market than bulls would like to see. 

All of this is happening, of course, headed into our own elections tomorrow with the midterms. The market has clearly been at least somewhat nervous about them, and I suspect the VIX is still a bit low compared to where it likely should be given the tech weakness and headline risks out there. 

Saturday Night at Market Che... The Duck, I Says


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