Two dogs of the commodity “family”! It is difficult to find any commodities that are engaged in a bear trend these days. The only two we can find is livestock (hogs and cattle) and natural gas. However, every dog has its day……..and these are commodities we are talking about not Bear Sterns, Lehmans, Wachovia, AIG, Freddie, Fannie, Washington Mutual, National City, Citi, ML……i.e. commodities don’t go to zero (although a few have gone close). The fundamentals for both UNG and COW are “bad” but then again if they were “good” both ETFs would be 50%+ higher from where they are currently trading. From a technical perspective at least it does appear that someone has been willing to put their neck out (we take our hat off to those ultimate contrarians) and buy. Expect significant buying to come in once COW breaks above 30 and UNG breaks above 18.
Subscribers to our paid service are privy to our portfolio, sector weightings, and trade history.
Receive these market updates daily with our free newsletter.
