Monday, November 14, 2011

Natural Gas' Huge Contango: Kiss of Death for UNG; UNG Drop to $7.x

This is the current situation with natural gas prices:


There is currently a contango of 4.1% between the the two front month contracts. This is quite large. When this happens, UNg tends to underperformed. There has been contango for quite some time now, and anyone who bought UNG is painfully aware of the consequences.

In the meantime, UNG has now a 7 handle:



Absolutely dreadful.

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