3 replies to this topic

[SilentOne]

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.

[klono]

NG supplies have grown as a result of a non-eventfull hurricane season in the Gulf, an extremely mild winter, and up until now, a rather mild summer in the Northeast US. This week however, the air conditioners are running hard . If the hot weather persists, the price should increase. Then, the next variable is the hurricane season in the Gulf. If the hurricane season is a non-event, the supplies will build until winter heating season.

[SilentOne]

Took profits $44.99. Been in and out. Will look for a reentry. cheers, john

Edited by SilentOne, 15 August 2007 - 08:35 AM.

[SilentOne]

Added back some here at 42.5 - 43. cheers, john