Natural Gas... $1.70 Target?

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Quote from Clubber Lang:

FYI-

UNG is one of the worst "tracking" ETF's.

Check out it's correlation with natural gas. Massive slippage in rollover and fees.
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True, but does that mean it shouldn't be played for trying to catch a swing? Long term, many of the ETFs sort of suck or don't correlate as well as we think they should, but they're still playable for trades.
 
Quote from Scataphagos:

True, but does that mean it shouldn't be played for trying to catch a swing? Long term, many of the ETFs sort of suck or don't correlate as well as we think they should, but they're still playable for trades.
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If you don't have access to trade NG, then UNG is pretty much the default vehicle to use. Unfortunately, you know going in that you will get shafted for at least 10-20% of the real move due to UNG's shitty structure.

Best of luck whichever way you choose to go.
 
Quote from Clubber Lang:

If you don't have access to trade NG, then UNG is pretty much the default vehicle to use. Unfortunately, you know going in that you will get shafted for at least 10-20% of the real move due to UNG's shitty structure.

Best of luck whichever way you choose to go.
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UNG is not really a "purely natural gas" fund.. in spite of its name. It's more of a "general petroleum fund with an emphasis on NG".

Therefore... that it "does not track NG as well as it could", should not be an indictment. If anything, the name is a bit misleading.

Still... when the "energy complex" rallies or declines, NG goes with it.
 
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