Thursday, March 19, 2009

UNG-USO Ratio



last fall I wrote a couple posts indicating that Natural Gas would out-perform Crude Oil (though admittedly I lost interest in the subject before the trend really got rolling). well, as you can see, the ratio of UNG to USO has backed off significantly that last few months. and today (of all days!) Natural Gas dropped hard, this after the commodity had been pumped pretty hard on the newswires recently.

I'm not sure what to make of the situation, and really I don't have a strong interest in the subject, but looking at UNG-USO I see the potential for good support not far below the current rate.