The Natural Gas ETF (UNG) Could Benefit In A Big Way If A Treaty On The Environment Is Signed

natural-gas-runup“Clearly, global warming, climate change, the greening of America and the globe are all front and center in the media these days. Who knows what is true, and what is not about CO2 emissions, etc., but if enough people buy into the going green idea to save planet Earth, then perhaps cleaner energy producers will benefit. Let’s have a look at the U.S. Natural Gas Fund ETF chart (NYSE: UNG),” Mike Paulenoff Reports From Market Oracle.

“Not withstanding its management issues (see our discussion in the chart annotation itself), the UNG could benefit in a big way if a treaty on the environment is signed.  From a technical perspective it is forming the second low of a big double bottom (8.94 and 8.50), but most hurdle key resistance at 10.50 to trigger upside acceleration towards 12.25/50.  As an alternative to the UNG, if you want a position in clean energy as part of a portfolio, you may want to look at the Powershares Clean Energy Fund (PBW), Claymore Solar Energy ETF (TAN), and Chesapeake Energy Corp,” Paulenoff Reports.

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The investment (UNG) seeks to replicate the performance, net of expenses, of natural gas. The trust will invest in futures contracts on natural gas traded on the NYMEX that is the near month contract to expire. It is nondiversified.

The investment (PBW) seeks results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the WilderHill Clean Energy index. The fund normally invests at least 80% of total assets in common stocks of companies engaged in the business of the advancement of cleaner energy and conservation. It may invest at least 90% of total assets in common stocks that comprise the Clean Energy index. It is nondiversified.

TOP 10 HOLDINGS ( 27.04% OF TOTAL ASSETS)  
Company Symbol % Assets
American Superconductor Corpora (AMSC) 2.85
Applied Materials, Inc. (AMAT) 2.65
Cree, Inc. (CREE) 2.72
Echelon Corporation (ELON) 2.69
Evergreen Solar, Inc. (ESLR) 2.69
INTL RECTIFIER (IRF) 2.66
Itron, Inc. (ITR) 2.66
ORMAT TECHNOLOGIES (ORA) 2.79
Rubicon Technology, Inc. (RBCN) 2.66
TRINA SOLAR LTD ADR (TSL) 2.67

The investment (TAN) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MAC Global Solar Energy index. The fund normally invests at least 90% of total assets in common stock, ADRs and GDRs that comprise the index. It generally will invest in all of the stocks comprising the index in proportion to their weightings in the index. This fund is nondiversified.

TOP 10 HOLDINGS ( 58.38% OF TOTAL ASSETS)  
Company Symbol % Assets
First Solar, Inc. (FSLR) 11.17
MEMC ELECTRONIC MTRL (WFR) 5.55
Q-CELLS (QCE.BE) 4.49
RENEWABLE ENERGY (REC.OL) 7.72
SMA SOLAR TECH (S92.BE) 4.07
SOLARWORLD (SWV.BE) 6.11
SunPower Corporation (SPWRA) 5.46
SUNTECH POWER HLDGS (STP) 5.51
TRINA SOLAR LTD ADR (TSL) 4.15
YINGLI GRN ENGY ADR (YGE) 4.15

Chart for PowerShares WilderHill Clean Energy (PBW)

 

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