The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Shorting Stocks


Subject:  Re: UNG natty gas Date:  2/3/2012  11:25 AM
Author:  grier22 Number:  44543 of 44633

etf bounce at $5 with volume. Just watching, the downtrend may continue.

Meanwhile WSJ reports today on the supply glut due to new production and mild winter.
The more likely scenario is that forced sales of gas push prices below $2, and perhaps even $1, for a brief period at some point this year. The real solution will be for such low prices to encourage more demand or, more immediately, for gas producers to shut-in some production, like Chesapeake Energy did last week. Citigroup puts the breaking point for high-cost producers at about $1.80, 27% below today's price. Ultimately, a crash may be the only way to get this market to rebalance in short order.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us