As mentioned yesterday, natural gas is where the hot money is moving - today despite the morning weakness natural gas futures are up as I write. I don't like the ETF for the commodity very much at all as it has a lot of issues but it might be the better play for all I know - instead I am going to buy the ETF mentioned yesterday that deals with the companies who deal in the production of the natural gas: First Trust ISE Revere Natural Gas (FCG). Obviously the stocks are hostage to the overall market so even if nat gas goes up 30% from here, if the market tanks the stocks will as well. Sort of like buying gold versus gold miners but the gold ETFs are far superior to the natural gas ETF.
I will start with a 1% allocation in the $17.40 area and see how it goes. If it drops below $16.50 I will cut back, although there is not much to cut back here. This is the first time I've ever touched this ETF.
Long First Trust ISE Revere Natural Gas in fund; no personal position