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Capturetrends

 
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  • Next UNG Target $30, If Regulatory And Technical Hurdles Are Cleared. [View article]
    Thank you for your kind words
    Dec 2 08:12 PM | Likes Like |Link to Comment
  • Next UNG Target $30, If Regulatory And Technical Hurdles Are Cleared. [View article]
    You went against the trend (buying in a bear market) and got burned. Think of the money you would have made if you had identified the trend correctly and been short.
    Yes Contango is a problem but a 50% return so far in less than a year is great contango or not. They most important thing that should matter to any investor is whether an investment can make money after taking into account the risks. For a small investor looking for a pure natural gas play there are not may options out there. Contango will be a problem for ETFs using futures.
    Nov 29 10:41 AM | Likes Like |Link to Comment
  • Next UNG Target $30, If Regulatory And Technical Hurdles Are Cleared. [View article]
    Yes Brian you are correct. The things investors have to go thru to satisfy Uncle Sam
    Nov 28 08:08 AM | Likes Like |Link to Comment
  • Next UNG Target $30, If Regulatory And Technical Hurdles Are Cleared. [View article]
    @NG is the natural gas continuous futures contract traded on the Nymex and the charts show price on 4/20/12 is $2.772. Now that price is $3.86. The underlying for UNG is the futures price and since you are now bringing the spot price and saying that UNG is adjusted to spot price let me quote from Morningstar which analyzed UNG:
    "UNG invests in near-month futures contracts, and as each month draws to a close it has to "roll" its position forward. Effectively, the fund sells its soon-to-expire position and purchases a contract further from expiry to avoid physical delivery. When the prices of those back-month contracts exceed the price of the front-month contract (known as a state of contango), the fund loses money each time it rolls its position"
    Even though UNG loses money due to contango the rally more than makes up for the loss.
    Nov 27 09:33 PM | Likes Like |Link to Comment
  • Next UNG Target $30, If Regulatory And Technical Hurdles Are Cleared. [View article]
    JJ Butler...I agree
    Nov 27 04:57 PM | Likes Like |Link to Comment
  • Next UNG Target $30, If Regulatory And Technical Hurdles Are Cleared. [View article]
    Why is that the "only" way?
    Nov 27 04:55 PM | Likes Like |Link to Comment
  • Next UNG Target $30, If Regulatory And Technical Hurdles Are Cleared. [View article]
    Randy I have to confess that I am not good at timing the market. My expertise is pricing the market. I can make a good estimate about what is good price, but can never say for sure when an asset will reach that price.
    Nov 27 04:55 PM | Likes Like |Link to Comment
  • Next UNG Target $30, If Regulatory And Technical Hurdles Are Cleared. [View article]
    The UNG rally from its all time low to today is about 54%, contango included. The natural gas futures (@NG) price traded on NYMEX rallied about 40% during the same period. Contango favors UNG rather than the underlying futures contract.
    On the other hand since July 2008 to the all time low UNG lost 97% while @NG lost about 86%.
    Seems like contango works in favor on longs in a bulls market and shorts in a bear market.
    Nov 27 04:53 PM | Likes Like |Link to Comment
More on UNG by Capturetrends
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