Revisiting the UNG
With Natural Gas inventories grossly missing expectations for the past few weeks (coupled with bad fundamentals and a bad chart), the United States Natural Gas Fund (NYSE: UNG) has been falling like a stone. I have been an early and repeat short in the name and have suggested many times for readers to short as well. Today I am taking the vast majority of my short position off.
The volume on the United States Natural Gas Fund is already running above 22 million shares, eclipsing its average daily volume and it is only 10:12 a.m. cst; by the end of the day this looks like it will trade twice that. There does seem to be some liquidation as well as the ETF is continuing to sell off hard without really much respect to price. I am not suggesting that the ETF cannot move lower (I still have a small put position) as it can, but only that the majority of the move has clearly happened and it appears that a swing trade to the upside may be in store in the near term.
