I don't post here often.
The truth is, I bought 3000 shares of UNG at $10.00 and didn't understand the investment, and neither did my financial adviser. I didn't fire him, because he has made me a ton of money and saved me from making allot of big mistakes.
I have a friend who is an energy analyst in Houston who explained the whole "contango" thing to me. No question, this investment sucks. It is flawed. The trend in NG is against us, and we are standing over an abyss as we speak. The NG companies are hedged and thus will continue drilling at least in the short term, and there may be the attitude they don't care what they sell gas for if they are an Integrated company who sells oil, and NG.
I think this is going lower. That being said, it could spike up once it hits bottom (wherever that is) because someone has to make money and I think the crap is manipulated.
Certainly, there are better places to put money than UNG.
Since I have 2 for 2 in eliminating people from the message board why dont you take up a challenge with me and see who would survive.
I guarantee you I would win as you dont do any intelligent analysis into the natural gas market, hence your downfall.
But I am sure you wont, because you are a coward.
eranger is correct, this stock eats itself, natural gas is staying low for good until a large portion is consumed, there is no us energy plan, so whether the u.s. decides to hoard it and use it here, or export it all, which neither of these will happen for a few years.... there is no reason to own this etf, if you want a natural gas play, companies like cheniere energy (lng) are the way to go, it is a spec play, but its made huge gains recently, it will most likely pull back in the short term, but if they get approval to export liquified natural gas beyond nafta countries, the sky is the limit, they wouldnt be online for another 3 to four years but there are some big boys involved with this stock, the department of energy should let cheniere know soon if they are approved or not, hey you guys can invest in whatever you want, i hear ung is a great day trading vehicle, but your insane if you think you will make money on this etf in the long run ( 3 to 4 years)