This is a plot of the weekly chart of UNG for 1 year. Nothing positive. Andrew Gould has said before that SLB is a Nat Gas company... for instance look at US Land. They live and die on Nat Gas. With so much money tied to land Frac this can only mean one thing... a very conservative guidance, if any, and poor numbers.
If you can find a chart on the Land Rig count for the US Land that looks basically like the UNG chart. Until we start to put in a bottom in Nat Gas, the quarterly guidance is going to be aweful.
The silver lining to all this... A great buying opportunity is upon us. Definietly not now, but soon. So buy some puts to hedge long stock calls and use the inevitable profit of these puts to pick up some stock at a lower price.
Regards,
Martin
The Rich Engineer
