Posted by ottinger44falc on 24th of Feb 2014 at 05:59 am
Survup, I do not know the answer to your question without
knowing more specifics of your question (which timeframe).
However, anyone trading futures-based ETFs and especially
natural gas ones, should be aware of the method they "roll over",
when they "roll over", and whether and how much contango or
backwardation is present. The rollover date for UNG in
February was Feb. 12-18, and for March will be March 13-18.
You may also want to understand how this roll occurs by
searching a comparison of the UNG versus UNL ETFs. Also, with
natural gas, it is now in the rarer situation of being in
backwardation instead of contango. This implies that during
the March roll-over, UNG should be prone to increasing versus the
spot natural gas price instead of decreasing as it usually does
when in contango. Just my humble opinion, do your own
research on this.
NatGas
Posted by survup on 23rd of Feb 2014 at 10:32 pm
Question:why did UNG not reflect in price the drop $natgas had?
All traders of natural gas ETFs should understand this !!!
Posted by ottinger44falc on 24th of Feb 2014 at 05:59 am
Survup, I do not know the answer to your question without knowing more specifics of your question (which timeframe). However, anyone trading futures-based ETFs and especially natural gas ones, should be aware of the method they "roll over", when they "roll over", and whether and how much contango or backwardation is present. The rollover date for UNG in February was Feb. 12-18, and for March will be March 13-18. You may also want to understand how this roll occurs by searching a comparison of the UNG versus UNL ETFs. Also, with natural gas, it is now in the rarer situation of being in backwardation instead of contango. This implies that during the March roll-over, UNG should be prone to increasing versus the spot natural gas price instead of decreasing as it usually does when in contango. Just my humble opinion, do your own research on this.
Nat Gas
Posted by racerick on 24th of Feb 2014 at 05:37 am
4 hour chart - http://screencast.com/t/jBhflL540