Bought 250 HND.TO @ $6.51

Update: I closed this at \$6.36 just now as my HOD.TO position is trekking back close to breakeven. This is a loss of \$37.50 + \$9.90 commission. I re-entered my natural gas short with HND.TO @ 6.51 as planned on my previous break-even trade. The U.S. Natural Gas Fund (UNG) is testing the top of its channel at \$7.85 as shown on Figure 1.

[caption id="" align="aligncenter" width="570" caption="U.S. Natural Gas Fund (UNG)"][][][/caption] However, HND.TO cracked the \$6.50 support as I'm writing this and is now trading down to \$6.38. My mental stop is at \$6.20 and hard stop is \$6.00. Figure 2 shows the intraday chart of HND.TO as the time of my entry. My risk for this trade is (\$6.51 - \$6.00) * 250 shares = \$127.50 = 1.4% of my RRSP trading account. This should be the last of my new position for a while. I have enough on the table with my CM.TO, HOD.TO, and this. My goal now is to move my stops to breakeven as soon as possible.

[caption id="" align="aligncenter" width="570" caption="Horizons BetaPro Natural Gas Bear Plus (HND.TO)"][]1[/caption]

Posted 03 June 2010 in stocks.

Sold 380 HND.TO @ $7.35

I closed my Natural Gas short position this morning as Horizons BetaPro NYMEX Natural Gas Bear Plus (HND.TO) tested \$7.40 support on notable volume. Figure 1 shows the intraday chart of HND.TO at the time of my exit.

[caption id="" align="aligncenter" width="570" caption="Horizons BetaPro Natural Gas Bear Plus (HND.TO)"][][][/caption] HND.TO touched \$8.60 last week while I was away. So I am not taking any chance for this position to go negative. The net gain in this is \$25 after \$10 commission, which is essentially breakeven from my \$7.25 purchase price a couple of weeks ago. Looking at the daily chart of Figure 2, it seems that natural gas is in consolidation mode. I will be watching the channel as drawn on Figure 2 for another chance to short it via HND.TO later. [caption id="" align="aligncenter" width="570" caption="Horizons BetaPro Natural Gas Bear Plus (HND.TO)"][]1[/caption] As of this writing, HND.TO has drifted down to \$7.14 at the close. I am watching to buy back my shares of HND.TO at \$6.50.

Posted 02 June 2010 in stocks.

Bought 380 HND.TO @ $7.25, Stop 7.00

I am shorting Natural Gas via the Horizons 2x leveraged bearish ETF (HND.TO). The U.S. Energy Information Association (EIA) released their weekly natural gas storage report yesterday. The underground storage amount is only 4.9% above last year's level. However, as Shocked Investor points out, last year's amount was a record high. So 4.9% above last year's is even higher. Figure 1 shows the two year graph of natural gas storage and the 5-year avearge channel. [caption id="" align="aligncenter" width="570" caption="Weekly working natural gas underground storage"][][][/caption] Coincidentally, natural gas futures was testing \$4.50 resistance yesterday (Figure 2) within a prolonged downtrend. As such, both fundamental and technical shows bearishness. So I shorted natural gas with HND.TO today on retracement to \$7.25 support (Figure 3). This retracement is due to HND meeting resistance at \$7.50 (50% Fibonacci level on the \$8 to \$7 drop this week).

[caption id="" align="aligncenter" width="570" caption="Natural Gas futures (NG)"][]1[/caption] [caption id="" align="aligncenter" width="570" caption="Horizons Betapro Natural Gas Bear ETF (HND.TO) intraday chart"][]2[/caption] As this is a leveraged ETF, I am hoping to close this trade in a few days. Size: 380 shares Price: \$7.25 Stop: \$7.00, with an open stop limit order. Target: \$8.00 Reward / Risk = 0.75 / 0.25 = 3. I am risking 1.08% of my RRSP account in this trade. Good R/R. Limited risk.

Posted 14 May 2010 in stocks.