This is a follow up to the last post in regards to commodity related equities. In this speculator’s opinion, the end may be close but not quite there yet. In the natural gas ETF, UNG, the current volume seems to be on pace to hit record volume over over 6M when the previous record was 5.1M. At this point with a little less than 4 hours in the trading day, the volume is at 3.4M with average volume of 1.9M. Could this be a capitulation point?

The high of the UNG as $63.90 and today is about $49.90 so the fall is about 22% according to my new TI-84 Plus calculator. The natural gas prices had an high of $13.68 and current price of $11.39 resulting in a drop of about 17%. Most of this drop occurred in the last two weeks, so is it too much too fast of a drop? Is it a bottom in natural gas? It maybe be close but with any hurricane or geo-political tension, it can rise but it seems the trend is still down for now.

DISCLOSURE: Blogger currently long of CHK

Popularity: 16% [?]