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Natural gas (UNG -4.5%) plummets following a larger than expected inventory build as well as a...

Natural gas (UNG -4.5%) plummets following a larger than expected inventory build as well as a continued outlook for moderate summer temperatures in the Northeast. Total stocks now stand at 2.533T cubic feet, off 522B from a year ago, and 31B below the 5-year average.
Comments (10)
  • eagle1003
    , contributor
    Comments (1653) | Send Message
     
    Today's sell off is a good buying opportunity. Between now and the end of August is the time to load up on NG plays. The larger build of stocks is not the story. Current storage stocks are well below last year and below the 5 year average. That is what matters. I am accumulating now and will buy more if the price declines further.
    27 Jun 2013, 12:16 PM Reply Like
  • BTM
    , contributor
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    Recent news out of Washington doesn't hurt either.
    27 Jun 2013, 12:32 PM Reply Like
  • ericlodewijk
    , contributor
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    Agree I bought UGAZ at 21,22 and today at 18.80 and will continue to buy until it hits bottom around 14.The turnaround will come around mid summer and UGAZ will shoot back up to 40 for a nice profit.
    27 Jun 2013, 04:46 PM Reply Like
  • gulleyj
    , contributor
    Comment (1) | Send Message
     
    If you think it's going to bottom at $14, why buy at $18.80?
    28 Jun 2013, 12:24 PM Reply Like
  • ericlodewijk
    , contributor
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    Because catching a falling knife is difficult.I buy in batches of 20% so I have two more rounds to go if UGAZ continues to fall.Look at it from a macro point of view this ETN sure as the sun will rise tomorrow will be at forty this year so it does not matter to much if your average is 19 or 17.
    29 Jun 2013, 08:27 AM Reply Like
  • eagle1003
    , contributor
    Comments (1653) | Send Message
     
    Ericlodewilk: I trade in much the same fashion as you. No one knows where the bottom is or how long it will be at the bottom before a reversal that could be very quick. It is much more prudent to begin buying in small batches just in case the turn around occurs sooner than later.
    NG is now in a primary uptrend and it is just a matter of time before it is breaking into fresh highs although that may not occur for two or three months.
    29 Jun 2013, 05:17 PM Reply Like
  • ericlodewijk
    , contributor
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    Glad that somebody else understands the law of averages
    30 Jun 2013, 01:11 PM Reply Like
  • rajesh007
    , contributor
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    theres a gap in nat gas charts at 3.29 and 3.38.needs to get filled then rally higher
    29 Jun 2013, 01:45 AM Reply Like
  • eagle1003
    , contributor
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    Rajesh007: I have seen plenty of gaps, over the years, that were never filled before a primary trend resumes. You may prove to be correct in this instance but I wouldn't count on it. If NG does get down to that level, I will be buying like there was no tomorrow.
    29 Jun 2013, 05:19 PM Reply Like
  • ericlodewijk
    , contributor
    Comments (12) | Send Message
     
    If nat gas goes to 3.30 or so UGAZ will be below 14 and I also will be buying like crazy so I agree.I also think that this scenario is probably the worse case this season for nat gas.
    30 Jun 2013, 01:16 PM Reply Like
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