Thursday, June 4, 2009

UNG Drum

I seem to be beating the UNG drum a lot here recently, but it continues to display some gorgeous price action. There was a pretty sweet intraday reversal off of today's low. Volume continues to shoot to the moon as well, suggesting some big players are accumulating shares hand over fist.

It seems eerily similar to the huge increase in volume that occurred when oil bottomed out back in Feb-March. It will be interesting going forward to see if UNG exhibits strength similar to what USO did after bottoming.

Recent posts on UNG: UNG naked puts, UNG breakout
Tyler-

3 comments:

Anonymous said...

Perhaps the large volume pickup is due to seasonal hedging before the hurricane season blows in. Also, could be due to dollar concerns that we are seeing such a large volume of etf trades in nat gas.

Tyler Craig said...

Anon,

Thanks for your thoughts. I'm sure we could attribute the higher volume to a myriad of reasons. I'm not so much concerned about the why as much as the what. In other words, I tend to just keep it simple by assessing the price action (the what) and leave it to the pundits to try to rationalize every move (the why).

Mike said...

I just checked both graph shared by you. It seems similar to the huge increase in volume that occurred when oil bottomed out back in the month of February.
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