Saturday, June 05, 2010

Saturday Rock Blog: Scarlet Begonias 1977

Here I've got an interesting ratio chart (UNG/USO) that I came across this afternoon. After seeing natural gas have a great rally the past few weeks, even as deflation ruled, I was curious how it fared compared with oil. Don't read too much into this, these are both some of the worst ETFs out there, USO underperforms oil and UNG can't keep up with natural gas. I'd be expecting that rising wedge (red) to break down soon and resume the longer term trend down (falling 50dma below falling 200 dma). So the trade would be to short UNG and go long USO. That being said, Oil looks like it could be forming a long term top here, I'll try and post an oil chart later or maybe CS will. UNG/USO six month daily, enjoy:


Chicagostock said...

I definitely like nat gas over crude oil. I'll try to post something on NG, but can say that NG has found support at $4.00 consolidating and pushing higher off the level it had gapped up last Sept. A good reference point imo.

Anonymous said...

Il semble que vous soyez un expert dans ce domaine, vos remarques sont tres interessantes, merci.

- Daniel