DavidtheGrim

Today in Commodities: The Commodity Train Is Leaving the Station

Abe...... Find the facts first before you post! Here's the NGAS ETF discussed in my previous post........

www.etfsecurities.com/...

Your looking at general stocks instead of funds!

Today in Commodities: The Commodity Train Is Leaving the Station

Reginald... I don't think Matt implies that the dollar is linked at all with commodities, it simply doesn't work that way!

UNG is a fund specialising in futures contracts which can be risky to say the least.

If investors are looking for a better deal IMO try the following ETF's: NGAS + NGSP both the same apart from NGAS denominated in USD and NGSP denominated in Sterling.

NGAS & NGSP are designed to track the DJ-AIG Natural Gas Sub-Index sm and pays a capitalised interest return which cumulates daily. The Sub-Index is an "excess return" index and the interest component combines to give a total return investment.

Or try put options, short/forward or leveraged if you are brave enough!

Today in Commodities: The Commodity Train Is Leaving the Station

Commodity trading has never had a better time over the last few years, traders often assume they are untradable, some of my best calls have been within the commodities areana over the last 2 years.

A dollar call short will be hard to call unless a market mover decides to pull out entirely, the best action would come from China which would bring the USD to its knees but China is already building a hedge against this with commodity reserves especially copper and gold.

As for natural gas I have been sitting on that said train and remain a first class passenger for the long run and not to make a short profit. Investors need to understand cycles and trends to make the most of profits here and natural gas fits perfectly within this sceanario.

If you can look at UNG chart but take the 20 year view (min) on trend association here and take note of the 15 year moving average and its low price points, that my friend is where we are currently and the trend is perfectly following the last 15 year low, within 12-24 months I strongly suspect that natural gas will have trippled in price towards the 10-12$ area but thats my opinion.

Forget the dollar movement for commodity movements especially gold it simply doesn't work all the time, infact it usually moves higher on the recovery from a reccesion as deep the one we are in so expect further moves up and also down unless CFD trading investigations reveal what is expected then the PM market could go either way depending on the situation at the time through short positions etc by the custodians backing the CFD market which is ultimately 'strange' in itself, if you hold CFD/ETC stocks look at the small print closely, very closely and you will discover the main shorters are the custodians of that said market which should be illegal.

Like I said just my opinion!