Saturday, July 18, 2009

A Chart a Day #9: Why I'm not buying UNG


Anonymous said...

This little rally we're seeing is the UNG roll. Just like last month it made nat gas rally and create that fales breakout. I bet they are heavily short and this is how you see them cover the front month and roll it out into the next month.

Also remember with Cap and trade, BHO is going to bankrupt all coal companies.

Anonymous said...

I see that you have been shacked out of the market with most people believing that we are heading lower, I tend to believe this market has bottomed and the possibility of moving higher are that much higher imo. A close above 3.75 leads to a push to 4+. NG needs to hold the 3.30-3.20 level to have placed a near term low. Nice

pythagoruz said...

Both UNG and the futures market are both gonna be effected by the contract rolling and the open/closed nature of the ETF but frankly I just write this off as being too complex and unknown to be useful to me. For Wall Street traders who "know" more about the details and timing of the process this kind of thing might be more useful. I might be persuaded otherwise.

On cap n trade, this is fundamental information which again, I'm not smart or confident enough to use.

But yes, I did get "shacked" out of the natural gas market when the pattern I had been watching failed. I agree that a long term bottom is being formed but I suspect that lower prices are in the near future for nat gas.

Good luck to you both though!