Window Dressing Wednesday – Quarterly Crash Ahead?

We're just waiting for the other shoe to drop.

Yellen testifies before Congress this morning (10) but while she's doing that, both Jay Powell and Jim Bullard will be speaking at a Conference of State Bank Supervisors and, in case that's not enough to whip the market up and down 100 points, we have Durable Goods at 8:30 and Oil Inventories at 10:30, a 7-Year Note Auction at 1pm and the Charlie Evans speaks at 1:30 followed by Loretter Mester at 4:30 and Esther George at 7:15.  I'm sure by then we'll have a very clear picture of what's going on {end sarcasm font}.  

Meanwhile, we were happy to hear yesterday that the Saxo Group has finally (9 months later) caught up to our Trade of the Year idea on Natural Gas (UNG), saying:

Natural gas is being supported by an eroding supply glut and a potential tightening in 2017. Our breakout model has given a buy signal in natural gas today on the continuation chart above $2.998/therm.

Isn't that nice?  I couldn't agree more, our target is $4 in Jan 2018 but, sadly, you missed the easy meal we made for you last Decemer, when, after choosing /NG for our Members, I laid out our long case in the morning post on Dec 8th, while it was still below $2, saying:

Our UNG play is proprietary to our Options Opportunity players but I'm happy to help you play along with Carl and the way I would set up an LNG play is as follows:

  • Buy 10 2017 $30 calls for $14.60 ($14,600) 


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