I’m opening another MSOX position.
Today:
I closed that position.
MSOX opened today at $3.74 and hit a high of $4.99
That’s a max gain of 33% intraday, 54% from the previous close, and 112% from the close 2 days ago.
Those figures underscore these statements I’ll keep reiterating:
When a sector is so beaten down, with so many having abandoned it in frustration and losses, the upside is exceptional and often exponential.
Political winds slowly blowing in a favorable direction, though not without hiccups.
Patience, process, and prudence are paramount.
Selling some for such a big, fast windfall is part of that process and prudence.
I booked an actual gain of 25%, selling at $4.67 after just a few hours of holding.
What of “patience”? We could all use more of that.
No intention to turn this into a day-flailing stock flipper blog. That’s luckily just the way it went this time.
I’m still in the cannabis sector for the long term, and if I can restore this sold MSOX position at a much lower cost I’ll do so.
There’s a good chance the rally of the past couple days retraces and, to quote the profound market musings of W. Axl Rose, “you know I don't like being stuck in the crowd.”
Natural Gas
Three positions in levered natural gas exposure via BOIL is enough for now, but I’m tempted to add and in time I probably will.
Why?
Here’s a long term natgas chart:
As exciting as those breaking down trends are, the real line to watch is the horizontal green line at $2.50
Seems every time we get there it’s proven to be a great price, as you can see.
But guess what?! The above chart ends at the start of 2017.
Here’s what happened the following year:
Then what?
By 2020 natgas was back below $2.50 but by 2022 it was nearly 300% higher, and more than 400% higher than its lows.
Just a year later, it’s been back below $2.50
Maybe this time it’s different?
Maybe, but it’s much more likely I’m going to make a killing in natural gas. Again.
However, again:
Patience, process, and prudence are paramount.