Loading ...ERX + CRB – Close to a Bottom?
I was looking at Plunger’s LNG chart and thought “geez, that looks more like a bottoming structure than something I’d be interested in shorting anytime soon. How much meat is left on that short bone?”. Then I looked at my ERX weekly chart with fork already fitted from weeks ago and I think we may be carving out a bottom. It will likely take months of basing to actually start to make money on the upside but other charts look better to me than this one to be thinking short. Just a perspective that may be helpful.
Speaking of not much meat left on the bone, the CRB also looks closer to bottoming than serving up a wonderful risk/reward short. Just throwing out some perspective to keep us all honest.
I think there is a lot of meat left on the bone, but later down the road. I covered today as it is due a counter trend bounce. Jim Chanos apparently thinks so too as his work is very bearish on the fundamentals as lots of LNG supplies is set to come on the market over the next 1-2 years. Good short sell candidates should have a lot of distance to fall and this one qualifies. I am giving it a rest for now however
http://stockcharts.com/h-sc/ui?s=LNG&p=W&yr=5&mn=0&dy=0&id=p02584780857
Ah yes, LNG does look much different than the rest of the energy complex. I didn’t look left!