I removed the DTO leg at $71.61 of the DTO:UNG paired-trade today. The trade netted 5% for a 24-hour investment. As I mentioned on Twitter, I may learn to regret removing the leg. Matter of fact, in after-hour trading, DTO closed at $72.24. UNG closed the day at $15.71, which was up 7%. I still like the natural gas story and its technical picture. The other trade from Friday was ZSL, which closed at $8.79 (+10%). (See the following chart on SLV.) To say the least, it was a good day. However, I realize what the market gives, it can take!
The main reason for selling DTO, besides the 5% gain, was due to the unrest with aftermath of the Iranian election situation. If this situation implodes within Iran, oil will definitely rally.
I still maintain these markets (equities, bonds, oil, and metals) are all tied directly to what happens to the dollar. Therefore, one must pay very close attention to what happens at the BRIS meetings tomorrow.
Note: To enlarge, double-click inside the chart.
Note: To enlarge, double-click inside the chart.
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