UNG ETF - It Doesn't Pay To Trade It From The Long Side

The ETF for Natural Gas, symbol UNG was down over 6% today after failing to push through overhead resistance at $12. If you compare the top chart with natural gas futures which is in the lower pane, you will notice a very obvious divergence. Natural gas futures have enjoyed a rather nice advance this month taking out the highs from 5 months ago while the ETF (UNG) couldn't even rally above the lows from July!

There is no edge at all trading this ETF from the long side. This ETF does not track the movements of the futures market accurately and is a big disappointment if you plan on trading from the buy side. I guess if the technical signal is there, you're better off shorting this ETF which I did today with my protective stop right above the $12 area. Seems like there is an edge but only if you are short!