UNG -Positive Contango

Discussion in 'ETFs' started by hajimow, Jan 19, 2010.

  1. Does it mean that it is time to trade it as the market sentiment on Nat Gas is flat? You will not lose any money because of contago effect as it used to be 4 months ago.
     
  2. 1) Anytime is a good time to trade it, regardless of market sentiment. UNG looks as though it can trade down to $8.01 in the near future, especially if the weather remains mild and calm. We're just about beyond the point in Winter when the coldest weather tends to occur.
    2) The carrying charges in the futures may have eased but you can lose more money if the market merely weakens. :cool: