Posted 02 August 2007 - 03:37 AM
I bought a position in natural gas recently via the ETF UNG. The fund tracks the price of natural gas via futures contracts. I'm not convinced that these type of funds work well in tracking the underlying commodity's price. Look at USO for example. Oil is testing its previous highs, yet USO is no where near that level right now.
United States Natural Gas Fund
First objective would be $8.
The price for natural gas seems to be way out of wack relative to the price of oil. I'm aware the market dynamics are completely different for oil (global) and NG (local), but NG appears to be far too cheap here.
cheers,
john
Edited by SilentOne, 02 August 2007 - 03:40 AM.
"By the Law of Periodical Repetition, everything which has happened once must happen again and again and again-and not capriciously, but at regular periods, and each thing in its own period, not another's, and each obeying its own law ..." - Mark Twain