Natural gas: The bear market continues… to the tune of 342$ gains!
Today's Financial News - Posted November 18, 2009
Natural gas funds and companies such as United States Natural Gas ETF (NYSE:UNG) and Cheniere Energy (AMEX:LNG) are bearing the brunt of a beginning commodities squeeze.
by Andrew Snyder
Baltimore, MD TFN: Today, the equities market is taking a step back after disappointing housing figures show a recovery may not be as quick as many investors had anticipated.
As for the value of the dollar, we’re may see signs of a turnaround. As Obama pleads with China and Washington begins to pretend it cares about debt control, the dollar has had trouble eclipsing the $1.50/euro mark.
That’s bad news for the commodity bulls.
If you have been watching the natural gas markets, you know which way the trend is headed. With the exception of a one-day turnaround on Monday, prices continue to sink lower and lower and lower. So far today, gas prices are off by close to 5%.
On Monday, we gave back some ground, but almost all of our natural gas positions have recovered. As I write, the United States Natural Gas ETF (NYSE:UNG) sits at $8.98, just a few cents away from all-time lows.
Our corresponding put options are now worth gains of 342%! We’re getting close to taking our profits on this one. If we hit the 400% gain level once again, I will reevaluate the situation and send you an update.
Our other three related plays are up by 33%, 15% and 33%, respectively.
Keep a close eye on Cheniere Energy (AMEX:LNG) as it hovers around the $2.00 mark. We broke the key resistance level last week and need one more breakthrough for this one to really plunge.
Continue to hold all four natural gas plays… we remain steadfastly bearish on natural gas and its associated industries.
Next Article: TFN eNews 11/18/2009: How long will gold go up? The answer may surprise you!
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