The Rising Influence of Rising Affluence

[CT]

In general, I think we all judge credibility based on what people say compared to what we (individually) believe to be intelligent. DD, you're very good about pointing out lazy, moronic, ignorant, etc. errors in corporate or analysts' reports of all kinds. I'm sure these issues help you filter, in the future, who you spend your limited time reading.

Specifically, UNG suffers from the same problem that plagues USO.

The investment objective of UNG is for the changes in percentage terms of the units' net asset value to reflect the changes in percentage terms of the price of natural gas delivered at the Henry Hub, Louisiana, as measured by the changes in the price of the futures contract on natural gas traded on the New York Mercantile Exchange that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire, less UNG's expenses.

Trading only the near month contract makes the operations behind this fund vulnerable to gaming.

The image in the link below shows the performance over a three year period of UNG, the continuous front month NG contract (NG1), and Devon Energy (DVN, just an example).

http://investorshub.advfn.com/uimage/uploads/2010/7/29/nodhhUNG_NG1_DVN.jpg

Personally, if I wanted to play NG through equities, I would use a small basket of the pure NG plays. In fact, that is what I do.