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Natural Gas

ung_002

The United States has been going through one of the coldest winters with snow falling in all states other than Hawaii. Yet, UNG and NG futures continue to fall. I’m quite the novice with respect to the fundamentals driving natural gas, but I would think that by any measure this winter should have been a catalyst to drive natural gas higher. Nope. The falls continues.

The long term descending triangle pattern is obvious. Could another leg down be on the way? It sure looks like it.

§2572 · February 18, 2010 · UNG · · [Print]
  • Looks like natural gas may not ride the dollar on this one!
  • I've had a few good UNG trades but I'm definitely underwater on it over the long term. In my opinion, it is very difficult to trade.
  • I had a 70% chance, readings on my DIA chart, that Fri. would be down. So I went for it.
  • 2-18
    It's Carnage in AH, everything is down-- I'm 90% short, 10% long, heck, I'm even short the DIA.
    http://www.marketwatch.com/tools/stockresearch/...
  • It is looking good. Are you fully invested?
  • roscoe_casita
    From a fundamental perspective, I use natural gas in my home, and spend on average 500->1000$ a year on Natural gas for heating the house, water, and cooking.

    If I was looking to hedge the price of natural gas for 1-2 years, would UNG be the way to do it? (because of low capital) - I'm willing to wait this out, especially if i can get an even further reduced price!
  • Electric in TX is tied to NG but I don't hedge it. You can guy a hedge from the electric company but it is such a heavy price that it isn't worth it. The annoying part is that the rate has dropped so much that they started to add a fixed fee each month to all of their plans. Same old story. They profit on the upside but when the variable rate goes against them they charge extra fees. So is life.
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