I hope no one has been badly burned by this BOIL

There is an ETF for the gas sector called “BOIL” (how  metaphorically it is!) Its price action in the past month was also parabolic in line with the gas prices. It has already been cooling down a bit but I think it will tank if what I outlined above materializes. That’s why anyone who was chasing BOIL to the moon will likely be boiled to death or at least badly burned in the near future, if not immediately! Hope you are not one of those!!


This was the warning I sent out just about one month ago about the parabolic move of natural gas.  At that time, it seemed to me a no brainer to expect a crash of it. Well we got it and the crash has happened much faster than I thought. Here is the updated chart of BOIL which was around $60 when I sent the warning. Now it is low $20s. Ouch! So we are talking about 2-3 times decline within a month time. Rarely you will see this kind of fast downward move unless a burst of a gigantic bubble! I sincerely hope no one got burned by BOIL or anything from the NG bubble. The million dollar question is whether the worst is already over with NG? I'm not so sure yet but for those who is betting on the downside of NG (BOIL or anything else), it may be a good idea to take the profit for now. Even if NG has not reached to its ultimate bottom, it may start with a violent dead cat bounce at any time now. This is especially true if we get a severe cold weather warning which may come easily now. For BOIL, I won't be surprised to see it bounce back towards $30ish within a very short period of time. That will be a 25% jump from the current level. For aggressive trader, betting for this bounce may also be an idea. Of course, nothing is guaranteed but I think this is a likely next move for NG.