WARNING!!! FLAMMABLE MATERIAL BEING TRANSPORTED!
Natural Gas is about to explode. Demand is low, supplies are high, so why would nat gas go higher? Two things. The dollar and money coming out of the market as it goes down may move to commodities and energy as an inflation play. It makes no fundamental sense, but it makes perfect technical sense. Also making perfect technical sense is the chart on UNG. It has clearly shown a bottoming pattern and the beginning of an upward curve. It also has passed key resistance and is bound for the 200 dma.
KRE is doing what it should be doing in times of higher interest rates. But this should just be the beginning. Interest rates have been rising for weeks but KRE is just now hitting the tip of the iceberg. KRE will be at 15 before the end of July if not sooner. Sept 15 puts look really good here.
SRS is starting to look really good again. Breaking the 20 dma resistance and onward to the 50 dma which is running close with the 20 dma. we should see a cross of the 50 dma by the 20 dma which could mean a move to the 200 dma soon after. but I still hesitate to move anything more into SRS since shorting KRE seems to be a better and safer play.
The VIX has confirmed it wants to stay above the 20 dma. I hesitate to say it but this sure does feel like a real reversal to me, not a fake one. So many technical indicators are screaming that the bull run is over. How far do you want to take it so early? Thats up to you.