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Better to Watch the Pain in Natural Gas From Afar

|Includes: CHK, DVN, The United States Natural Gas ETF, LP (UNG)

 You may recall my advice to abandon natural gas at $4.30 in the face of giant new discoveries in shale formations (see “Cash out here at $4.30)  and “Huge Discoveries . Since then, the Midwest has suffered its wettest spring since 1871. It rained 25 inches in Chicago the first half of the year, drowning golf courses, and sending the mosquito population exploding to Biblical plague proportions. Let me assure you, I have absolutely no ability to predict the weather, except that my combat scars itch when a storm is coming. Cold weather means no air conditioning, which means cratering natural gas demand and a new two month low of $3.37. But when you see a parallel contract like crude soar to new heights, and NG fail a half dozen times to get off a five year low, you know rough weather is coming. The crude/gas ratio players really got carried out in body bags on this one, as one record after another was shattered, taking it to a stunning 19.4:1. Natural gas has been the worst performing investment this year, the ETF (NYSEARCA:UNG) falling a mind blowing 54% since January.  Best to wait for natural gas to find its new, lower, range before entertaining a position.