A man wrote a story about how people buy and sell something called natural gas. He looked at how prices change every week and found out that on Thursdays, the price usually goes down when some important information comes out. But recently, this has not been happening as much. He tried to make a plan to buy or sell natural gas based on this idea, but it did not work very well lately. Even though, he still thinks this change in prices might come back later. Read from source...
- The authors seem to have a strong bias towards the bearish trend of Natural Gas prices on Thursdays, especially around the time stock data is released. They use this as the main premise for their trading strategy, but they do not provide any solid evidence or explanation for why this pattern should persist in the future.
- The authors also seem to have a very short time frame for their analysis, only considering the period from 2010 to 2021. This is not enough to establish any long-term trend or persistence of bias. Moreover, they do not account for the possible effects of external factors, such as geopolitical events, weather conditions, or technological innovations, that could affect the demand and supply of Natural Gas in the market.
- The authors claim that their trading strategy would have yielded gains of more than $70,000 from 2010 to date, but they do not provide any backtesting results or performance statistics to support this claim. They also do not show how their strategy would have performed during different market scenarios, such as periods of high volatility, low liquidity, or extreme price movements. Furthermore, they do not disclose the risks and drawbacks associated with their strategy, such as transaction costs, slippage, or the possibility of large losses in case of a reversal of the trend.
- The authors end their article with an optimistic tone, saying that it is fair to say that the bias persists over time, although it may have paused. They also suggest that it would be better to return to a less turbulent market situation to continue achieving good results in the future. However, this statement seems to be based on wishful thinking rather than empirical evidence or sound reasoning. It also ignores the fact that markets are constantly evolving and changing, and that no trading strategy can guarantee success in any given period.
Overall, I think this article is poorly written and lacks credibility and reliability. It seems to be more of a sales pitch for a trading system than an objective analysis of the Natural Gas market. The authors use selective data, questionable assumptions, and unsubstantiated claims to support their argument. They also fail to acknowledge the limitations and challenges of their approach, and they do not provide any practical advice or guidance for readers who might be interested in trading Natural Gas. I would not recommend this article to anyone who wants to learn more about the topic or improve their trading skills.
Neutral
Explanation of sentiment analysis: The article is mainly descriptive and informative, providing an analysis of the weekly bias in natural gas trading. It does not express a strong opinion or emotion about the market or the strategy, but rather presents the facts and some observations based on data. Therefore, the sentiment is neutral.
1. The market for natural gas is highly volatile and unpredictable, especially in recent years due to geopolitical factors, supply chain disruptions, and changing consumer demands. Investing in natural gas ETFs or futures contracts can offer high returns but also involve significant risks of losses.
2. The article suggests that there is a bearish bias on Thursdays between 6 am and 12 pm (based on historical data until 2021) that could be exploited by traders using a simple short strategy with a fixed stop loss at $1,200. However, this bias may not persist in the future or may change due to market conditions or other factors beyond the control of investors.
3. The author of the article claims to have developed and tested such a strategy on historical data from 2010 to date, and reports that it would have yielded gains of more than $70,000 with some drawdowns during turbulent periods. However, this result is not guaranteed and should be taken as an illustration of the potential performance of such a strategy, not as a promise or recommendation for actual investors.
4. In order to trade natural gas successfully, traders need to monitor the market constantly, adjust their strategies according to changing conditions, and use risk management tools to limit their exposure to losses. Trading natural gas is not suitable for all investors and requires a high level of skill, experience, and discipline.
5. Benzinga provides analysis and insights from external contributors who may have different opinions or perspectives on the market and its trends. These contributions are meant to inform and educate readers, but do not constitute professional advice or endorsement of any specific products or services. Traders should always conduct their own research and due diligence before making any investment decisions.