U.S. Natural Gas ETF (NYSE: UNG) Tries For Ground Hog Boost
The U.S. Natural Gas ETF (NYSE: UNG) is getting a cold
weather boost.
Chart Courtesy of StockCharts.com
The cold weather blitz, and ground hog aside, the potential for at least one
or two more weeks of it seems to be boosting natural gas. That means that those
with a short term orientation can consider using UNG.
The ETF had some trouble in keeping up with the general trend of natural gas
last year due to some issues related to the number of shares outstanding. That
seems to have been ironed out, which means that owning UNG is likely to give
holders a more faithful adherence to the overall trend of natural gas.
The U.S. has enough natural gas reserves, by some fairly reliable estimates,
to power its own energy needs for at least the next 50-100 years, based on what's
likely available from shale rock deposits.
That's the reason for the fairly low price of the commodity for some time. Yet,
a short term spike is always possible due to the weather.
The bottom line is that winter is still here and natural gas prices are perking
up. It's worth a look.
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