SamBragg.com

Watching UNG

UNG has taken quite a ride the past few months.  Supply just really beat it down, but I think long term this is a great time to buy despite the recent rebound.  I recently read this analysis by Chris Vermeulen on Seeking Alpha:

Natural gas has really come back to life. I mentioned on September 2^nd that natural gas (UNG) looked like a buy between $9 – $9.50 and it has now rallied 25% since that point. But stepping back and looking at the chart we can see resistance is hovering overhead between the $12 – $12.25.

I may send out a setup for a short play if we get one but I feel the heavy sell off in August was the final wave down, flushing out traders. Speculative traders seem to have moved into natural gas and I think they will continue to buy it for some time. Pullbacks will be sharp but most likely followed with more buying as we enter the cooler months of the year.

I’ve heard it is supposed to be a mild winter, but how they predict something like that is beyond me.  Regardless of the weather this year, I like this as a long term investment.

My covestor profile is tracking my Roth IRA, which is focused on dividends, but I have shares of UNG in my regular investment account.  I may end up creating another profile to track that account.

Here’s another great article on Seeking Alpha about Canada’s energy resources: http://seekingalpha.com/article/165856-o-canada-part-iii-black-gold-natural-gas-and-growing-dividends-too?source=article_sb_popular

Enjoy!

Tags: canada, covestor, energy, investing, money, natural gas, roth ira, seeking alpha, trading, ung

Check out SeekingAlpha.com

One of my favorite web sites for market analysis is www.seekingalpha.com.  First of all, the content is free, and that is a pre-requisite for me!  But honestly, they have really good analysis on almost everything I have looked at investing in and new articles are posted regularly.  Most of the mainstream finance sites…yahoo, CNN, MSN, bloomberg, [insert media conglomerate here]… are like lemmings when it comes to market analysis.  One week they are all saying “the sky is falling” and the next week the mantra changes and they all fall in line.  I’m really over those sources for analysis other than to know what sentiment they are pushing that day.  For real substance, this site provides plenty of food for thought.

No matter what you like to invest in, Seeking Alpha provides easy to find information.  I really like the way they break up the site.  Features are posted on the Home page. The Macro View is perfect for getting a variety of views on the current trends in the overall economy and staying in touch with economic reports.  Stocks & Sectors breaks articles down into a handful of focused areas…I tend to focus on the Energy sector.  Then there’s Global Markets, ETFs (I spend a bit of time here also), and Investing Ideas.  It works for new and experienced investors.

I like to look for swings in oil and natural gas, and try to buy undervalued funds or companies.  Right now there is a feature article at Seeking Alpha about such a company, China Natural Gas.  Here’s a link to the article: http://seekingalpha.com/article/162508-china-natural-gas-deeply-undervalued.  I wouldn’t buy something based on one article, but it did peak my curiosity.

Happy Trading!

Tags: China Natural Gas, investing, market analysis, money, natural gas, websites