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Natural gas futures shed 3% today to cap a 12% drop since late July. Commerzbank analysts were...

Natural gas futures shed 3% today to cap a 12% drop since late July. Commerzbank analysts were out this morning with a warning for gas bulls: "Because natural gas production becomes more profitable again at the current price level and gas-based electricity generation becomes less competitive, the recovery in prices is unlikely to continue."
Comments (5)
  • fuzzball
    , contributor
    Comments (24) | Send Message
     
    Short UNG...over time it can't go anywhere but down...LOL
    15 Aug 2012, 10:28 PM Reply Like
  • eagle1003
    , contributor
    Comments (1485) | Send Message
     
    You are going to in for a nasty surprise.
    16 Aug 2012, 03:02 AM Reply Like
  • eagle1003
    , contributor
    Comments (1485) | Send Message
     
    I meant to say : you are going to be in for a nasty surprise. UNG can move up pretty quick if NG rallies.
    17 Aug 2012, 02:35 AM Reply Like
  • fuzzball
    , contributor
    Comments (24) | Send Message
     
    I don't disagree with that. NG has to rally for UNG to work. If NG just trickles up or stays flat UNG will lose value over time. A long term short with the occasional long seems to work nicely. Contango can be your friend sometimes. VXX is another one I've been playing the same way with great success. It's even more contango infested than UNG.
    17 Aug 2012, 04:13 PM Reply Like
  • eagle1003
    , contributor
    Comments (1485) | Send Message
     
    Okay, you are obviously not a newby at the game and you know what you are doing. I do agree that over the long term, shorting UNG or any other contango "infested " ETF, will make you money. However, there will be times that the underlying commodity will go up faster than the ETF deteriorates due to contango and the fees combined. I suspect that NG will do just that over the next 6 months.
    18 Aug 2012, 12:10 AM Reply Like
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