Well that didn't work out as planned, granted i didnt buy at 120 a share, closer to 10 bucks a share, but here we are touching 6.75 a share.
Timing is everything of course. But the question is, how low does this go? At 6.75 a share, every 50 cents is a major swing, percent wise. Also it is possible that this ETF is simply broken. (mechanics of the etf).
I see opportunity, at this price I am thinking a bottom has happened or will be seen in the next few months. Unlike many other resources natural gas flows 24 x 7, and there is no "savings" by producers to not sell. So amid any demand weakness vs supply the price drops, to sell all production.
It is one commodity I think is pretty hard to manipulate. If you like the idea of buy low, sell high, well, I think everyone agrees looking at this chart, we are in the low zone. The only question is, will it ever be high?
I think so, just a matter of time.
Click here for latest UNG chart.
|From WebSufinMurfs FinancialBlog2|