UNG Performance During 2012 and 2016 Rallies
Updated
This is a continuation of my 2020 bull rally theory, finding the best way of capitalizing on the potential opportunity in front of us is the next step.
UNG follows the price of natural gas fairly well, UNG does experience rolling decay when futures are in contago. Contago is typical for natural gas futures. Because of the rolling decay holding UNG long term is not a good strategy. While not nearly as bad as UGAZ it still reduces possible gains over the long term.
UNG is predictable and a good option for novice investors looking to get into natural gas trading.
UNG would be a good hold for the daily cycle and a ok hold for the weekly cycle. Weekly cycle would be positions attempting to take advantage of the seasonal swings.
UNG options may represent one of the greatest opportunities, due to the risk of options having a predictable ETF like UNG to trade them on makes success more achievable.
UNG follows the price of natural gas fairly well, UNG does experience rolling decay when futures are in contago. Contago is typical for natural gas futures. Because of the rolling decay holding UNG long term is not a good strategy. While not nearly as bad as UGAZ it still reduces possible gains over the long term.
UNG is predictable and a good option for novice investors looking to get into natural gas trading.
UNG would be a good hold for the daily cycle and a ok hold for the weekly cycle. Weekly cycle would be positions attempting to take advantage of the seasonal swings.
UNG options may represent one of the greatest opportunities, due to the risk of options having a predictable ETF like UNG to trade them on makes success more achievable.
Note
I posted a video on YouTube discussing this chart. youtu.be/urXICTXWQyMI discuss the potential 2020 bull rally, UGAZ DGAZ and UNG
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