February 19, 2015
Baird Montgomery @ ex AG Edwards
Retired Top Hard Asset Investment Broker/Trader from A. G. Edwards
SEASONALS SAY GO LONG NATURAL GAS ETFs
In addition to fundamentals I keenly watch technical indicators on stocks, ETFs, and commodities. I believe natural gas ETFs and futures should rally based upon a number of indicators I have been watching.
Note that the seasonal tendency is for nat gas to rally into mid to late March (see chart). Nat gas is in oversold territory and my indicators signaled a "buy" this morning. Usage should be very high for the next 10 days. Plus, commercial long hedgers' net position is near a record high.
The biggest nat gas ETF is UNG. The most aggressive nat gas ETF is UGAZ at 3x. BOIL is my 3rd recommended ETF. (see charts).
No trade is without risks. Warner weather is due to arrive in around 10 days.
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