Sponsors of the United States Natural Gas Fund (NYSEArca: UNG) took baby steps toward restoring the fund’s ability to issue new shares yesterday.

 

Sponsors of the United States Natural Gas Fund (NYSEArca: UNG) took baby steps toward restoring the fund’s ability to issue new shares yesterday.

UNG is an exchange-traded fund that invests in the natural gas futures market. The fund stopped issuing new shares on Aug. 12, citing regulatory uncertainty in the commodities marketplace. The Commodity Futures Trading Commission is investigating the role of ETFs in the commodities market and is expected to announce strict position limits for such funds. Many expect the $4 billion UNG ETF to exceed the allowable limits, as it controls a significant portion of the front-month natural gas futures market.

Since halting the issuance of new shares, UNG has traded at a sharp premium to its underlying net asset value, as demand for the fund has outstripped

...

Barclays Capital announced today that it is halting the issuance of new shares in the iPath Dow Jones-AIG Natural Gas ETN (NYSEArca: GAZ).

 

Barclays Capital announced today that it is halting the issuance of new shares in the iPath Dow Jones-AIG Natural Gas ETN (NYSEArca: GAZ).

GAZ is the third commodity-focused exchange-traded product to stop issuing shares in the past few weeks, joining the United States Natural Gas Fund (NYSEArca: UNG) and the PowerShares DB Crude Oil Double Long ETN (NYSEArca: DXO).

GAZ saw significant inflows after the sponsors of UNG (the only competing natural gas product) announced on August 12 that they were suspending issuance of new shares. GAZ ended July with $127 million in assets, but closed yesterday with $187 million, nearly a 50% increase.

Investors turned to GAZ following the announcement because UNG started trading at a large premium to its net asset value; it closed yesterday at a 12.4% premium

...

In today’s video I will be looking at an ETF that closely tracks the natural gas market. The United States Natural Gas Fund (PACF_UNG) is one of the more popular energy ETFs and a could be a great market to add to your portfolio as the “Trade Triangles” are catching profits from the spectacular moves.

In this short video I’m going to show you how our “Trade Triangle” Technology outperformed one of the smartest investors on the planet. I am of course referring to the legendary oilman T. Boone Pickens. I’m using his own results for his hedge fund BP Capital Management LP.

Check out his results here. Starting from March of 2008 with our results starting at the same time. I will let you draw your own conclusions on this one.

You can watch this video with our compliments:

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

In today’s video I will be looking at an ETF that closely tracks the natural gas market. The United States Natural Gas Fund (PACF_UNG) is one of the more popular energy ETFs and a could be a great market to add to your portfolio as the “Trade Triangles” are catching profits from the spectacular moves.

In this short video I’m going to show you how our “Trade Triangle” Technology outperformed one of the smartest investors on the planet. I am of course referring to the legendary oilman T. Boone Pickens. I’m using his own results for his hedge fund BP Capital Management LP.

Check out his results here. Starting from March of 2008 with our results starting at the same time. I will let you draw your own conclusions on this one.

You can watch this video with our compliments and there is no registration requirements. We

...

Yesterday was a crazy day for the natural gas span class="blsp-spelling-error" id="SPELLING_ERROR_0"etf/span, span class="blsp-spelling-error" id="SPELLING_ERROR_1"UNG/span. Trading was halted in the middle of the afternoon due to the issuer needing to issue more shares. Here's the press release:br /br /p /pblockquotepOn July 6, 2009, the United States Natural Gas Fund, LP ("span class="blsp-spelling-error" id="SPELLING_ERROR_2"UNG/span") announced in a current report on Form 8-K that only 32,100,000 of its units registered with the Securities and Exchange Commission (the "SEC") were available for purchase by span class="blsp-spelling-error" id="SPELLING_ERROR_3"UNG's/span Authorized Purchasers. As stated in its current prospectus, span class="blsp-spelling-error" id="SPELLING_ERROR_4"UNG/span creates and redeems units in blocks of 100,000 units called "Creation Baskets" and "Redemption Baskets," span class="blsp-spelling-error" id="SPELLING_ERROR_5"respectively/span. Only Authorized Purchasers may purchase or redeem Creation Baskets or Redemption Baskets. /pp As of July 7, 2009, span class="blsp-spelling-error" id="SPELLING_ERROR_6"UNG/span issued all of the remaining outstanding units to its Authorized Purchasers. As ...

Natural gas is trading in contango right now, but a proposed fund could offer a solution.

 

There’s another commodity fund in the works from the same firm that has brought to market such controversial funds as the U.S. Oil Fund (NYSE Arca: USO), the U.S. Gasoline Fund (NYSE Arca: UGA), the United States Natural Gas Fund (NYSE Arca: UNG) and the U.S. 12-Month Oil Fund (NYSE Arca: USL).

This time around, United States Commodity Funds LLC—formerly Victoria Bay Asset Management—is seeking approval for its second “12-month” commodities fund, except this one will invest in natural gas—or rather, the futures contracts that promise delivery of natural gas to Louisiana’s Henry Hub.

As with USL, the most recent filing indicates that the fund generally will hold a complete basket of the next 12 months’ futures contracts (as opposed to UNG, which simply holds the upcoming month—August 2009

...

Above is a graph of various commodity ETFs. The main ticker is UNG (United States Natural Gas Fund), a ETF which tracks prices of natural gas delivered at Henry Hub. OIL is the iPath Oil ETN. JJA is the iPath Agricultural Commodities ETN.  JJM is the iPath Industrial Metals ETN. And, JJP is the iPath Precious Metals ETN. The chart displays the year-to-date performance of these various commodity indexes and it’s plainly obvious that one stands out among the others. Generally speaking, non-energy commodities have been on an upward trend since the beginning of the year and in fact would have provided mid-to-high teens returns just in the last few months! Even oil, though down precipitously in the first

...

Natural gas prices have shown some strength recently, piggy-backing on higher oil prices.  Although last week’s higher than expected gas storage update is bearish in the short-term for natural gas prices, the longer term outlook bodes well for significantly higher natural gas prices.

Although oil prices will also probably pull-back from the recent run-up with the technical outlook turning bearish in the short-term, if oil prices breach the US$50 support level, oil prices are likely to remain strong in the years ahead, which will help to support natural gas prices.

Despite the current over-supply of natural gas, the supply-demand situation is likely to achieve equilibrium over the next two years that will support higher long-term natural gas prices.  Supply has increased substantially primarily due to reduced industrial demand during the recession and a warmer than usual winter in the north-east U.S.  However, many

…

United States Natural Gas Fund - UNGNatural Gas has been one of the hardest hit areas of the market, getting beaten down even worse than Oil, losing 80% of its value since July 2008. Earlier this week, natural gas futures hit their highest point in 3 months, indicating a recovery is in the works. Since hitting a new 52-week low of of under $13 just last month, United States Natural Gas Fund UNG div class="feedflare" a href="http://feeds.feedburner.com/~ff/StocksAdvice?a=v2XAi6O2mQY:vLci9rxmoJo:XhI0_UKdTUU"img src="http://feeds.feedburner.com/~ff/StocksAdvice?i=v2XAi6O2mQY:vLci9rxmoJo:XhI0_UKdTUU" border="0"/img/a a href="http://feeds.feedburner.com/~ff/StocksAdvice?a=v2XAi6O2mQY:vLci9rxmoJo:yIl2AUoC8zA"img src="http://feeds.feedburner.com/~ff/StocksAdvice?d=yIl2AUoC8zA" border="0"/img/a a href="http://feeds.feedburner.com/~ff/StocksAdvice?a=v2XAi6O2mQY:vLci9rxmoJo:7Q72WNTAKBA"img src="http://feeds.feedburner.com/~ff/StocksAdvice?d=7Q72WNTAKBA" border="0"/img/a a href="http://feeds.feedburner.com/~ff/StocksAdvice?a=v2XAi6O2mQY:vLci9rxmoJo:V_sGLiPBpWU"img src="http://feeds.feedburner.com/~ff/StocksAdvice?i=v2XAi6O2mQY:vLci9rxmoJo:V_sGLiPBpWU" border="0"/img/a a href="http://feeds.feedburner.com/~ff/StocksAdvice?a=v2XAi6O2mQY:vLci9rxmoJo:qj6IDK7rITs"img src="http://feeds.feedburner.com/~ff/StocksAdvice?d=qj6IDK7rITs" border="0"/img/a a href="http://feeds.feedburner.com/~ff/StocksAdvice?a=v2XAi6O2mQY:vLci9rxmoJo:gIN9vFwOqvQ"img src="http://feeds.feedburner.com/~ff/StocksAdvice?i=v2XAi6O2mQY:vLci9rxmoJo:gIN9vFwOqvQ" border="0"/img/a a href="http://feeds.feedburner.com/~ff/StocksAdvice?a=v2XAi6O2mQY:vLci9rxmoJo:dnMXMwOfBR0"img src="http://feeds.feedburner.com/~ff/StocksAdvice?d=dnMXMwOfBR0" border="0"/img/a /divimg src="http://feeds.feedburner.com/~r/StocksAdvice/~4/v2XAi6O2mQY" height="1" width="1"/

While history has shown us that there shouldn’t be much correlation between the stock and commodity markets, the current inter-connectedness between the two at the moment is still very evident. We’re still seeing large, intra-day and intra-week price swings, most of it coming on the heels of stock market moves. 

So much for history.

It makes more sense to focus on the present - and that means taking what the market gives us. With commodities, that’s a hearty dose of volatility…

Another Chance To Go Long On Natural Gas

The natural gas market giveth and then taketh away.

We’ve been bullish on the natural gas market since the price hit a long-term support level near the $4.500 per MMbtu mark a few months back. Since making a new low price of $3.740 (based on the May 2009 futures contract) on March 18, the futures blasted higher by 1,000 ticks and reached a high of $4.750.

...