Been tied up with other matters today, unrelated to the stock market. But one cannot help noticing how NGL is holding fast to the $16 line.
That tells me "gently" that the veerrryy near term bottom is in, near or at $16.00. Does it mean we can safely add at this threshold without concern that we might be overpaying? Of course not! This is precisely why I suggest buying in smaller amounts...perhaps in 200-300 unit lots as opposed to 500's. One of the more interesting points about trading in various lot sizes has to do with simple logic sometimes.....
The market maker may not have 500 units available for your bid but he may have 200 or 300. So do you fork over the $6 two times to secure your position add-on?
Everybody has to decide upon what works best. But do keep in mind that your price offered may be smart yet the order won't always fill due to the unavailability of units.
This $16 price point, if it even holds fast, is interesting in that it is the only pick out of my twelve portfolio members showing green at the moment. The big question, then, is this:
Why is NGL showing strength when most others are not?
I think it has to be either of two things and very possibly both...
Those who've been in the oil and gas business for years will tell you NGL has figured out how to be more sensitive to market conditions so as to avoid another melt-down. The other side of this coin? Within the next few to more than a few days will have management announcing guidance covering issues such as will the next distribution be 39 cents? Will it come with a decoration such as," Can we expect an improving distribution and if so, then when?"
These are heady questions to be sure. Yet they are within the domain of all things reasonable. And I do expect we'll find the company more open to exploring possibilities down the road but this time---not suggesting anything concrete.
As a lifelong teacher, I've always maintained there are three great answers:
1. Yes!
2. No!
3. I don't know.
Strangely enough, it's the #3 item above that I'll often recognize as the most honest of all.
The market swoon today is being attributed to the threat of a government shut-down. I hate politics, believing the threat of a shutdown to be an opportunity for some to attempt to pin the tail on the other. Being the owner of a donkey, I think there's enough asses around to compete with my critter.
Enough said! Know this--- "normal" will return to the market once the opportunity to manipulate has faded from recent memory and greed takes control once again.
Happy hunting!
