UNG

I sold UYG and bought more UNG today. It's a big change based on following:

1. Oil and natural gas has come down hard recently and this is the first up thrust. It has the potential to be a strong rally.
2. Oil to natural gas ratio is 6 to 1 to be normal, now it's 13 to 1. NG is cheaper and cleaner than oil.
3. If hurricane hits gulf, it has bigger impact on NG than oil, since all US NG supply is from US; just like 2005, NG doubled in the wake of Katrina and Rita, before it came down in Feb. 2006.
4. After labor day to winter, these are usually strong months for natural gas, maybe due to the fact that most of US use natural gas for heating.
5. Of course, downside risk is the destruction of demand in oil, therefore it maybe a short lived rally.