Wt Nat Gas 2x Discussion Threads

[ferrism] 28/2/2011 22:11

Absolutely right, dubwise. The structure of the product guarantees an end result of zero. That is beyond dispute. It's pure maths. The questions are...

1) When will it happen?

2) What path will it take?

Question 2 is the light at the end of the tunnel. The ETF has the potential to reflect an increase in the price of Natural Gas but only over a VERY short period of time. It will. of course, magnify a decrease due to the running costs. If you're looking much beyond a month then forget it.
All IMHO, DYOR etc.

[dubwise] 28/2/2011 21:48

So (trying not to labour the point cos I can see this has been gone over ad-nauseum for long term thread-goers):

potentially the downside is unlimited, even when it's already 0.35 away from zero, right? And even with gas bouncing, this "could" go (or more likely because of the contango effect WILL go) closer and closer to zero but never touch it?

(many thanks btw guys, I really mean that)

[ferrism] 28/2/2011 21:06

Or better still, don't try it. Contango destroys this ETF. It's only possible to trade a few days. Beyond that losses are absolutely guaranteed by the structure of the product. DYOR but please, please beware.

[wig123] 28/2/2011 20:04

dub, watch the contago effect.......... or contango as I like to call it.


I sold out to early as usual but any profit here is hard fought for.

Be nimble, be quick and good luck

[dubwise] 28/2/2011 19:59

Well i'm hoping I have caught the bottom although obviously people have thought that once or twice in the past to their subsequent displeasure :-0

I am actually just gonna run these from here long term though, no matter what they do...

if I heard anyone say that about any other trade i'd laugh, but it presumably can't go down through zero, and i've only bought enough that if it literally touched zero i'd still be in the black (no stops)

I'm aiming is to hold them through the hurricane season in August/September and cover most of my position at the top of a ludicrous spike upwards ;-)

[wig123] 28/2/2011 12:53

you could be right dub. ;;-)


mind you this bstd has a tendencey to blow your hands off if your not careful.


I am enjoying only my 3rd winning trade here out of 12



is C2I still about?

[dubwise] 28/2/2011 12:29

Nice rise today

I don't see much more downside in this.

[rocket mn] 28/1/2011 23:14

Well the change from downtrend to uptrend is still intact, for the time being...

[mart] 24/1/2011 10:27

Still in with several ISA's but waiting for the inevitable pullback.

[ferrism] 24/1/2011 09:21

Yes, Hyvast, still in this. There may even be a chance to take a profit if it carries on like this. I'm still holding against my better judgement. I've commented on the NGAS board that the fundamentals still look dire and these ETF's make awful trackers but I never did listen to sense!

[hyvast] 24/1/2011 08:13

Anyone still in here ?

[dr_ex] 30/12/2010 11:36

will this ever turn? bought some more at 0.4.

[daz] 16/12/2010 11:47

Just bought back in on the dip, has lost over 15% over the last few weeks, so hopefully can recover a little from here.

[contrarian2investor] 07/12/2010 18:47

Hi all,

This could finally put a floor under prices. Well I can always hope can't I!!!

US gas export plan sparks price fears
By Gregory Meyer

Published: December 7 2010 18:17 | Last updated: December 7 2010 18:1

[contrarian2investor] 07/12/2010 18:36

Hi all,

I am holding LNGA. I am expecting some positive appreciation over the next month or so. Given potential drawdowns during the cold snap in the US. Most NGAS have been very performers over the past 12 months. Strewth even Boone Picheks is losing money on is Natural Gas plays.

News just out:

Natural Gas Futures Decline in New York on Ample U.S. Supplies for Winter
By Christine Buurma - Dec 7, 2010 6:14 PM GMT



------------
Furthermore lots of deals recently in the NGAS space which are hard to decipher. Are they for synergies, due to margins tightening or opportunistic predators making shrewd investment at the bottom of the cylce?

December 7, 2010, 6:59 am Mergers & Acquisitions
AGL Resources to Buy Nicor for $2.4 Billion




c2i

[wapper] 07/12/2010 09:36

Well set for a strong rise now up to Thursday & if the 3.30 data on Thursday shows more than anticipated drop in stock levels we should see further strong gains. I am heavily LONG.

[daz] 23/11/2010 15:14

You would think with the chances of a cold snap getting ever more probable, there must be a good chance of that.

[rocket mn] 22/11/2010 00:13

A rise above .50 looks a good place to go long. It would be a break of recent resistance, would show a double bottom and would break the long term falling trend line.

[cottlet] 11/11/2010 13:28

Did anyone get the email from JAck BArnes (Money Morning) saying Natural Gas is due a bounce?
Looking at the chart the price is very low..........Could still be a bit premature to say its turned the corner.

[rat attack] 04/11/2010 16:34

Unfortunately LNGA is US based!!

[ferrism] 29/10/2010 09:16

Hi Mart. If you look at the ADVFN quote for NGSP the % change is erroneous, as it often is! It's based on what they think was the last traded price (18.2 at the moment.) The true bid price is around 18.95 which, by my reckoning would be about 4.1% increase over last night's close. There hasn't been much change in the £ vs $ since last night.
Now I like the idea of the hurricane. All we have to do is locate it.

[mart] 29/10/2010 08:32

Is there a hurricane that I don't know about?

[mart] 29/10/2010 08:15

Isn't this just reflecting movement in the dollar? Note movement of NGAS versus NGSP.
Incidentally I actually made a little turn on LNGA yesterday afternoon. I was astounded.