Will the solid trend in natural gas ETFs continue? Let's dig into the details.
United States Natural Gas ETF UNG is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 95.5% from its 52-week low price of $12.35/share.
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
Natural gas exchange-traded fund (ETF) United States Natural Gas Fund LP (NYSE:UNG) is pulling back from yesterday's surge, down 4.6% at $17.22 at last glance.
I cautiously recommended the natural gas ETF due to a developing La Niña Modoki, predicting a volatile, yet cold winter for the eastern U.S. Natural gas prices are expected to exceed $4.00 in January, driven by potential well-head freezes in the Gulf after January 7th. The Polar Vortex, influenced by a hole in the ozone, will push south after New Year's, contributing to historically cold conditions.
Natural gas prices are currently low but have substantial upside potential due to the approaching peak heating season and weather sensitivity. Short-term and long-term trends are bearish, but medium-term trends show a bullish bias, indicating potential for price rallies. High U.S. natural gas inventories are a bearish factor, but European demand and cold weather could drive prices higher.
Wall Street was upbeat last week on renewed Fed rate cut bets.