Yep, we did it again.
In yesterday's post, I noted that Gasoline Futures (/RB) were taking off, as they crossed the $1.35 mark and said our target was $1.45 and they already hit $1.40 during yesterday's session and it came so fast that we took the $2,100 profit per contract and ran, missing this morning's pop to $1.43 but hopefully we'll retest $1.40 for another entry (and another $2,100).
We're now into real profits on Gasoline Futures as we clawed back from our intitial loss with huge wins on Monday (+$1,875 per contract), Tuesday (+$1,875 per contract) and Thursday (+$420 per contract), where I said in Friday Morning's post: "Hopefully we'll pop over $1.35 (from $1.33) and run up from there.
We laid out our long premise for gasoline almost 3 weeks ago, right in the morning post:
So more people working making more money means more driving yet Gasoline Futures (/RB) have plunged to $1.39 this morning because that pipeline fire that caused prices to spike (which we shorted) earlier in the week, is already fixed but now we like /RB long because more workers = more drivers and we have the Thanksgiving Holiday coming up and that's a big demand holiday. We made a quick $500 yesterday on a pop off the $1.45 line so this, of course, is a much better entry but it's a scary, volatile contract that makes or loses $420 per penny move!
It's those boring FUNDAMENTALS that make plays like this possible and the next Funamental Issue we're tracking is the very low volume that this "rally" has been trading on and that means there's no real support for this sudden $5 TRILLION surge in market valuation so, when people do finally decide it's time to take profits – there won't be any buyers and we can drop back very, Very, VERY fast.
How are we playing that? Well we talked about it yesterday, so let's move along. Early this morning I put out a new note for our Members with shorting lines for all of our futures plays, that was:
So I like these shorting lines at /ES 2,200, /YM 19,000, /NQ 4,875, /TF 1,325 and /NKD 18,200 – 3 of 5 rule applies, tight stops if any go back over so the rewards can outweigh the risk – NO BATHROOM BREAKS!