{"id":23906,"date":"2025-05-06T07:30:00","date_gmt":"2025-05-06T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=23906"},"modified":"2025-08-22T08:31:41","modified_gmt":"2025-08-22T12:31:41","slug":"what-to-do-with-the-widow-maker-trade","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/what-to-do-with-the-widow-maker-trade\/","title":{"rendered":"What to Do With the Widow Maker Trade"},"content":{"rendered":"

The “easy money” has been made on the Widow Maker trade. Anyone who bought natural gas based on our recommendation on April 25<\/a> should take profits today.<\/p>\n

It’s not that the price of natural gas is headed lower in the days and weeks to come. Heck, it might even continue higher. But, the risk\/reward setup for the trade has shifted. It’s not as favorable as it was two weeks ago.<\/p>\n

Here’s an updated chart of natural gas…<\/p>\n\n\n

\"\"<\/figure>\n\n\n

Two weeks ago we noted natural gas had resisted its seasonal tendency to rally during April. Instead, the price had fallen 33% in about six weeks. And, natural gas was trading historically far below its 50-day moving average line. That\u2019s an oversold condition that often leads to a sharp, snap-back rally.<\/p>\n

So, we speculated the seasonal rally for the commodity had been delayed for a few weeks. And, buying natural gas near $3.00 per mcf represented a good risk\/reward trade.<\/p>\n

With the price already so far below its 50-day MA, further downside seemed minimal. Even a modest rally back to the 50-day MA could yield large profits.<\/p>\n

Now though, with the price of natural gas back to its 50-day MA, the risk\/reward setup for staying in the trade is about even.<\/p>\n

The price could keep rallying and natural gas could challenge its March high near $4.40. Or, it could find resistance at the 50-day MA, reverse, and head back down to the April low near $3.00.<\/p>\n

From the current price near $3.70, the widow maker trade offers $0.70 of potential profit and $0.70 of potential risk. Betting on natural gas right here is like betting on a coin flip.<\/p>\n

That\u2019s not a good setup for a trade.<\/p>\n

Traders who bought natural gas based on our suggestion two weeks ago should cash out now and look for a better risk\/reward setup someplace else.<\/p>\n

Best regards and good trading,<\/p>\n

\"Signature\"<\/p>\n

Jeff Clark
Editor, Market Minute<\/em><\/p>\n

\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff\u2019s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

The easy money has been made on the Widow Maker trade.<\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-23906","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=23906"}],"version-history":[{"count":3,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23906\/revisions"}],"predecessor-version":[{"id":25049,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23906\/revisions\/25049"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=23906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=23906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=23906"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=23906"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=23906"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=23906"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=23906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}