Friday, August 21, 2009

ETF Specifically UNG

we have a lot of regulation to deal with as FINRA also has their microscopes pointed
the ETFS do have a fatal flaw as a long term play it has lost 46% while the futures have give back 36% each roll over locks in a loss this is known as the contango curve. We normally shy away from plays like these but it was attractive for it had shrunk so much at first glance.
When the water is ready we will jump back into the futures and we may day trade this a bit as well as we get accustomed to it price fluctuation pattern -P:aid a little tuition here learning subtleties the hard way just because we got close to a 7 year low which we now have hit and pierced and now hover around no bounce no dead cat not even a dead mouse but it will come soon