Wednesday, February 1, 2012

UNG - Natural Gas - Is the Bottom Finally In?

Natural Gas has suffered from a vicious bear market, and in recent days, I've seen a nice spike from the multi year lows that was last experienced in 2009.  Price seems very close to the bottom, and we may see an easy recovery back to 4.00 - given how risk is behaving in recent weeks.

The position I am taking is through the ETF - UNG - $5.44 - with stop at 5.00 - and scaling in the trade for a hold for at least a quarter - this is more of a medium term trade.