Tuesday, June 30, 2009

Natural Gas (UNG) aka "The Widow Maker" Dropping Below the Trendline Pre-Market

This ETF is super volatile and has had some huge volume over the last month. I entered a long at right under $14 a few weeks back. Stop then was set below 52 week lows. Stop is still there although this is certainly a frustrating ETF to own because it shot up almost $2 soon after I bought it but I did not take much of my position off as I looked at this play as more of a longer term investment that based on the crude oil to natty gas ratio looked very undervalued. You can search the blog (search box on bottom right of the page) for other commentary on "The Widow Maker".

Is today's pre-market action a good place to buy the dip in UNG or are we set to head to new lows?

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