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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: tradingfaster123 who wrote (121699)	6/16/2009 8:13:39 AM
From: Ed Ajootian	Read Replies (1) \| Respond to of 206339

tradingfaster, it boggles my mind that that much money is picking this moment to invest in natural gas. I understand the intermediate/long term bullish case but given that the short-term fundamentals are about as bearish as they've ever been, it would seem that a better time to go long would be sometime in the future. UNG's market cap has now bolted well higher than USO's. I would gander that the ratio of UNG's market cap to the average open interest in the Nymex natty contract is much higher than the ratio of USO's market cap to the average open interest in the Nymex WTI contract. I hadn't been focusing much on the storage differences by region. I wonder how far we are from the producing region's storage capacity being maxed out, at which point it would seem that we would see forced curtailments even if there were still plenty of capacity in the other regions.

To: tradingfaster123 who wrote (121699)	8/12/2009 9:46:35 AM
From: Ed Ajootian	Respond to of 206339

tf123, I see from today's 8K that UNG's registration statement for a billion more shares is being declared effective today. However, they still don't plan on creating new units since they don't want to go buying more natty contracts or other investments in case the CFTC puts on position limits. This is unfortunate, I was hoping that they would issue another several billion $$$ worth of stock in the next few weeks and we would get a huge rally in natty. It would have set up a tremendous shorting opportunity. Now all I can hope for is that we get some tropical storm heading for the GOM....