While several commodities make headlines due to their jaw-dropping swoons, natural gas is displaying both relative and absolute strength.
Observing the weekly chart for UNG, below, the ETF used to be an easy punchline for market pundits going back several years. And you can see as much with the still-sharply declining longer-term weekly moving averages here, indicating that steep, multi-year downtrend.
Nonetheless, natural gas must now be taken seriously, as it closes in on a critical breakout zone. I view $23.40 up through $24 as the key to unlocking a legitimate move higher, denoted by the light blue line below. It may need another week or two before properly attacking that level.
But it is just above, and thus natural gas should be kept on watch given its obvious underlying bid when other commodities are, for all intents and purposes, crashing.
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He’s so lucky that the dude with the gloves on didn’t take his head off.
The trick to ung is, in essence, just following contango.
To play it? Go short ung (you are know short some asshats fees, and contango). And long whatever you feel follows natty in the ratio you see fit. Its essentially flawless….
Assuming natty is in contango.
I’m long $OKS.
A brave ‘Prankster’ in a gym full of muscle~heads…’Swagger Sponge Bob’.
“Are you the guy from the commercial ..1~800~need help now?”
Hahah