Home » Most Recent Stories

THE STEALTH BEAR MARKET IN NATURAL GAS

18 March 2010 by Cullen Roche 2 Comments

Stephen Schork, president of Schork Group Inc., talks with Bloomberg’s Lori Rothman about the outlook for natural gas and crude oil prices. Natural gas futures dropped to the lowest price in more than five months as a surplus of the fuel gained following a smaller-than-forecast stockpile decline.

Source: Bloomberg TV

Disclosures - Unless otherwise noted, authors have no positions in any securities mentioned and readers should never consider this to be investment advice. Always consult your financial advisor before acting on any ideas. Comments Guideline - Readers who denigrate authors or other readers will be banned without warning. This site does not tolerate any sort of reader abuse. The goal of this site is to create an environment that is conducive to learning and better understanding of the monetary system and the investment world. We expect readers to behave maturely and responsibly. We welcome and encourage intense and intelligent discourse, but the site adheres to a strict 1 strike policy. While it is your right to speak freely, it is not your right to behave childishly. Above all else, please enjoy the site. It is intended to be used as an educational tool and we hope the intelligent and mature debate will further that purpose. We hope readers will make an effort to respect that goal. Comments with excessive linking or foul language will be moderated before posting.
Comments
  • James

    I remember NG was like 2.50 at one point and Goldman Sachs came out and upgraded it and Barclays said that natural gas has not seen its low yet. I trust that both of the behemoths can be right. GS was already right, now I wonder if Barclays will be right. On that matter, UNG is a disgusting toxic wasting away instrument. I remember when UNG was around 11 dollars (and natural gas was like 3) people were going all into UNG and putting their whole life savings in it. Well then it dropped to around 8 and natural gas was 2.50 and then natural gas rallied to over 5 dollars and UNG only went back to 11. Basically they bought UNG at 11 dollars when natural gas was 3 dollars and then when natural gas RALLIED to over 5 dollars, it was still only 11 dollars. Now natural gas is 3 dollars again and UNG is around 7 dollars. If that isn’t a crooked fund I don’t know what is. They need to make sure they tell retailers not to ‘INVEST’ in these commodity and leveraged ETFs…

    03/18/2010 at 5:55 PM
  • Flakmeister

    UNG has the problem of contango, buying an rolling forward contracts kills it. That being said, it is a bad product. Invest in NG by buying the cash flows: SBR and HGT. I don’t like SJT, though it is part of that investment class (relatively poor dividend).

    Flak

    03/18/2010 at 9:31 PM