Here is a year chart of nat gas (top) and BOIL (bottom). You can see the decay.
I don't get into BOIL for long term investing. I'm in for the swing trades.emac0002 said:
Here is a year chart of nat gas (top) and BOIL (bottom). You can see the decay.
$30,000 Millionaire said:
It will take me a couple days to write a post but I'm going to talk about the 2-3 things I know you guys repeatedly make mistakes on: FOMO'ing into trades and knife catching. I actually understand the first one but I don't understand the second one.
$30,000 Millionaire said:
4) Which assets and asset classes are in vogue at the moment? Sometimes you get those banner days where they're buying everything. However, assets rotate: "they're selling high beta and buying staples" or they're piling into financials. At this exact moment, biotech is popular. In Q4 of last year, energy was where the action was. Once trades get crowded or saturated, money flows out of it and into something else. This cycle repeats itself over and over and over. It is always easiest to trade when you have relative strength on your side because they're buying the sector. You'll be victimized a lot less often when you start to see this. While this may seem painfully obvious, it's just easier when the wind is at your back. A great way of gauging trend is to look at moving averages: Is something above it's 8 day but not too extended? Is this sector up? This has good odds of continuation. Obviously it's not THAT easy, you just want the odds to be in your favor vs. random.
Came here to ask about this. If I had to guess, my thoughts are twofold:wanderer said:
/NG & BOIL are both up ~7%. That doesn't really make much sense to me since BOIL is 2x leveraged.
Similarly, I own LNG and RRC. They normally track NG futures like BOIL. But LNG is down 2.75% today while RRC is up 1.75%.Brian Earl Spilner said:Came here to ask about this. If I had to guess, my thoughts are twofold:wanderer said:
/NG & BOIL are both up ~7%. That doesn't really make much sense to me since BOIL is 2x leveraged.
1. The percentage is from a different start point than where BOIL ended up on Friday.
2. BOIL's underlying index is Nat Gas futures rather than UNG
Am I correct? Although I'm still a bit confused on it as well.
$30,000 Millionaire said:
Will respond later.
For today "don't expect too much from the market"
Charismatic Megafauna said:$30,000 Millionaire said:
4) Which assets and asset classes are in vogue at the moment? Sometimes you get those banner days where they're buying everything. However, assets rotate: "they're selling high beta and buying staples" or they're piling into financials. At this exact moment, biotech is popular. In Q4 of last year, energy was where the action was. Once trades get crowded or saturated, money flows out of it and into something else. This cycle repeats itself over and over and over. It is always easiest to trade when you have relative strength on your side because they're buying the sector. You'll be victimized a lot less often when you start to see this. While this may seem painfully obvious, it's just easier when the wind is at your back. A great way of gauging trend is to look at moving averages: Is something above it's 8 day but not too extended? Is this sector up? This has good odds of continuation. Obviously it's not THAT easy, you just want the odds to be in your favor vs. random.
What do you think about fading sector rotation as a strategy? Or is rotation out of a sector usually followed by consolidation rather than pullback?
Had a busy work week last week and was away from the computer. Closed these TSLA puts at 2.00 this morning for +77%. Earnings coming up 1/25.YaketyYak said:
Sold a few TSLA 2/17 100P for 9.00. Was originally eying the 90 strike, but wanted to catch some of this volatility.
I like TSLA long term and will take the shares for $91, but if it traded like a tech company on the way up, it can trade like a tech company on the way down.
Cheers!