I think I'll stay with equities for the time being as it's where I'm more comfortable with. Taking a hint from Tim Knight over at Slope of Hope, I took a look at UNG and it seems fine to me. Particularly, UNG has been hit hard lately, but on this breakdown day, UNG is holding relatively well.
Long entry stop: \$12.17, above intraday resistance
Exit stop: \$12.11, today's low, which is also a new long term low.
Target: \$13.00. Just to close the gap from earlier this week.
Reward / Risk = 0.83 / 0.06 = 13.83
This is a small position for 82 shares only.
As bad as the market is out there today, we're still not seeing an influx of volume from the morning session. Rather than diving into short positions, bears should be more cautious as the game is only beginning to unfold.
[caption id="attachment_1568" align="aligncenter" width="500" caption="US Natural Gas ETF"][/caption]
[caption id="attachment_1569" align="aligncenter" width="500" caption="US Natural Gas ETF"][/caption]
: http://traderpau.files.wordpress.com/2009/07/2009-07-08-ung.png : http://traderpau.files.wordpress.com/2009/07/2009-07-08-ung_prop.png