NatGas Trades

May 9th closing price of ERX tells us that it is time to close all Natural-Gas / Energy trades that we entered in late January. Previous closes produced good profits – see here, here and here.

• Exit ERX – Direxion Daily Energy Bull 3X Shares ETF – at or around 105.90, the close on May 9th

ERX was entered on Jan 24th at 77.55 and resulted in 36.6% gain. It had only one losing trade in six years.

This year this strategy has produced all winning trades for a net gain of 18.5%. The trades were held for a maximum of 105 calendar days, giving an annualized rate of 64.4%.

Overall since 2000, this strategy has given 57 trades with 88% win rate for an average gain of 22.4%. The average holding period was 93 calendar days. The compound rate of return was 229% beating the broader market return by 575%.

Long Bond Trades

Our bond trade during summer months has triggered one more trade by the close of May 9th, 2014.

• Go long LBND – PowerShares DB 3X Lng 25+ Yr Trsy Bd ETN – at or near 38.47, the close on May 9th

The trade should last till the end of third quarter when our proprietary algorithm will generate exit signal. There is one more potential trade for this strategy – Vanguard Total Bond Market (BND). We will send alert if and when it is initiated.