{"id":22175,"date":"2024-09-25T07:30:36","date_gmt":"2024-09-25T11:30:36","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=22175"},"modified":"2024-09-25T07:30:36","modified_gmt":"2024-09-25T11:30:36","slug":"this-widow-maker-trade-jumped-40-in-two-months","status":"publish","type":"post","link":"https:\/\/stage.jeffclarktrader.com\/market-minute\/this-widow-maker-trade-jumped-40-in-two-months\/","title":{"rendered":"This \u201cWidow Maker\u201d Trade Jumped 40% in Two Months"},"content":{"rendered":"

It’s time to bail on the widow maker.<\/p>\n

Regular readers may recall that I bought natural gas in mid-July<\/a>. I noted that it’s called the “widow maker” because it’s notoriously difficult to trade. <\/p>\n

And even though we didn’t see the typical summertime rally I anticipated, I stuck with the trade and reiterated my bullish stance two weeks ago<\/a>.<\/p>\n

The setup in natural gas looked bullish to me. It looked like the widow maker could gain 10% or more – fast.<\/p>\n

Here’s what has happened…<\/p>\n

\"chart\"<\/p>\n

(Click here to expand image)<\/a><\/p>\n

The dashed red lines on the chart show the “ascending triangle” pattern that had me leaning bullish, and the upside target of that pattern.<\/p>\n

Natural gas has exceeded my upside target. It’s trading 40% higher than where it was in July. It’s up 25% in just the past two weeks. And it’s time to take profits on the trade.<\/p>\n

Of course, plenty of traders will argue with me on this. They’ll say, “Let it run. Natural gas is blasting higher. The next obvious resistance is the June high near $3.20. And we’re heading into autumn and winter, when the demand for natural gas is likely to increase.” <\/p>\n

I can’t argue with any of that, except to say… natural gas is called the “widow maker” for a reason. <\/p>\n

It’s hard to trade. The price action is erratic. It doesn’t seem to conform to any rules of fundamental or technical analysis. <\/p>\n

So trading natural gas often feels like fending off death.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

If you can somehow make a profit in that situation, it’s probably a good idea to take the gain while you still have it.<\/p>\n

I’m out of the natural gas trade for now. Any traders who followed me into this position should consider following me on the way out as well. <\/p>\n

We’ll move to the sidelines and wait for the widow maker to set up again.<\/p>\n

Best regards and good trading,<\/p>\n

\"Signature\"<\/p>\n

Jeff Clark
\nEditor, Market Minute<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

This \u201cwidow maker\u201d trade has exceeded my upside target. It\u2019s trading 40% higher than where it was in July. And it\u2019s time to take profits on the trade.<\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-22175","post","type-post","status-publish","format-standard","hentry","category-uncategorized","publication-market-minute","person-jeff-clark"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/22175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=22175"}],"version-history":[{"count":1,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/22175\/revisions"}],"predecessor-version":[{"id":22192,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/22175\/revisions\/22192"}],"wp:attachment":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=22175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=22175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=22175"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=22175"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=22175"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=22175"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=22175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}