Natural Gas Flowers Soon To Wilt - Time To Short UNG

Fri, 05/25/2012 - 17:43 EDT - Seeking Alpha

By Bard Luippold:Like the tulips in my garden here in Tacoma, the "flowers" of spring natural gas rallies have wilted in each of the last two summers, leading to significant losses for bullish investors and traders. I expect the current natural gas spring rally to wilt as well and recommend shorting United States Natural Gas fund (UNG).Spot Prices Saw Summer Collapses in 2010-11; 2012 Following Same Script: Between 1993 and 2008, on average, the summer was a great time for natural gas spot prices, with July and August registering among the highest average future 3-month price changes. However, in both the 2010 and 2011, natural gas rallied strongly in the second quarter and then collapsed in the summer and early fall, with average future 3-month declines of 15-20% in June, July and August.So far, in 2012, spot prices have been sticking to the 2010-11 script, falling the first quarter (e.g.Complete Story »

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Natural Gas Flowers Soon To Wilt - Time To Short UNG

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