The United State Gasoline (UNG) exchange trade fund is a fund that attempts to track the spot price of gasoline in the U.S. Since the start of 2017 the fund has shown lower lows and lower highs. From the start of 2017, the fund has seen a decline in value of roughly 25%. Looking back two years prior shows a decline of 40%. In short, gas prices in the U.S. are relatively low and the fund’s price is reflecting that change.
If you’re planning on venturing out of your locale this 4th of July, I would suggest getting on the road early. I don’t need to consult with AAA for this advice. I only need to look at the chart above.
Low gas prices are an incentive for travel. No one likes being stuck in traffic, so plan ahead. Even a traffic cesspool like Los Angeles has times when the flow of traffic is normal; early morning and late night.
If you’re staying home and doing investing research, I would put a watch on UNG to alert you when it cracks $26.70. If you’re aggressive, I suppose a strategy would be to ride the recent positive price action? My concern is that the trend shows that the recent move up might not have much longer to run before it slides back down. This could be wrong and since uncertainty likes to rule the roost. Either way, I always suggest you have a clear strategy for entry or exit.
My advice…Take advantage of the low gas prices and take your family to a place where fireworks are more seen and not so much heard. This will help you avoid having to listen to your neighbors turning your neighborhood into a quasi-militarized zone for a night. Set the alert on UNG and if it continues to run up, then evaluate whether to buy in or not.
Enjoy America’s Independence Day.