Trading Now

Trading Now

Monday, August 24, 2009

UNG and Art Cashin on Market Disconnect

the constant pounding of UNG is apropo of the disconnect. Nat gas and oil should be side by side at least to some degree say experts but me thinks its Shorts killing something they can kill since they can't kill others that deserve to be killed: Banks. But couple that with a GLUT and the prospect of the CFTC curbing commodity trading, and UNG is fodder for any salivating Short seller needing to make a buck. There was news early this morning and late last night on some pipeline problem in some far away land, but then a story on the unlimited supply in the US alone, has killed any chance of a recovery as far as I am concerned. Go here to read a better explanation of how UNG ETF works and you will likely agree that it is past time to STAY AWAY.

And PS: C hit $5

*Art says he is taking some profits off the table due to disconnect in the economic numbers to the market. Housing sales were up on Friday but so was INVENTORY. Too much too fast and light volume spells disaster to me.

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