Thursday, December 27, 2012

Climateer Line of the Day: A Trend is Emerging Edition (UNG)

Today's Winner is Barron's Focus on Funds blog:
Natural gas prices are on track for a gain after a volatile year. The same can’t be said for a popular natural-gas exchange-traded fund.

The United States Natural Gas Fund (UNG) is down about 25% year-to-date, after falling 46 percent in 2011. And 41 percent in 2010. And 56 percent the year before that. Natural-gas futures, meanwhile, are ahead by about 13% year-to-date....
...MORE

Do follow the link for "Natural Gas, Contango and UNG".
We've explained that we prefer options on futures or walking on hot coals to having anything to do with UNG.

On "A Trend is Emerging" from a 2008 post:

"A trend is emerging."

I'm sorry, private joke. One of the best securities analysts I know said that in 1999 when looking at this chart, minus the last eight years of course, and right before the stock took a sixty percent dumper. At the time, MO was up approximately "1 billion, gagillion, fafillion, shabolubalu million illion yillion..." percent over the prior twenty five years.
Chart forAltria Group Inc. (MO)


Splits: Jun 3, 1974 [2:1], Jun 1, 1979 [2:1], Apr 11, 1986 [2:1], Oct 11, 1989 [4:1], Apr 11, 1997 [3:1]

(that's Dr. Evil's demand [...Yen] in the third movie, about which Wikipedia says "This time his demand is met with simple confusion from the world leaders.")

As I said in a 2010 usage of the phrase:
*The stock is Phillip  Morris (now Altria). The move depicted is 8 cents to $25.06.
$31.42 last.