Understanding the future—not just the present—is very important to ETF returns. And this is where the two basic questions for investors get answered.
What is the timeline of the trade?
The real question here is, how many times does the ETF have to “roll” its futures contracts between now and that trade date?
Use oil as...
There are striking similarities between the stock charts of the US ETF for natural gas (UNG-NYSE) now and where the stock chart for the US ETF for oil (USO-NYSE) was in December-February.
(An ETF, or exchange traded fund, is a security that tracks an index but trades like a stock.)
The...
By Brian Hoffman, CPA, CA
Natural-gas prices have shown some strength recently, piggy-backing on higher oil prices. Although last week's higher than expected gas storage update is bearish in the short-term for natural-gas prices, the longer term outlook bodes well for significantly higher natural-gas prices.
Although oil prices will also probably...
Why oil services stocks are outperforming oil producer stocks
By Brian Hoffman
The share prices of oil service companies have outperformed the share prices of large-cap oil and gas companies’ common shares since the broader stock market indexes started to move higher at the start of September. The...
By Richard Reinhard and Keith Schaefer
(This article is appearing simultaneously at Reinhard's website, www.gsweekly.com. Reinhard is an excellent technical analyst (he can read stock charts) and trader.)
Few investors realize it, but the oil ETF's give investors a monthly opportunity to make day trading profits on senior oil stocks.
(An ETF, or...