The Worst ETF Of 2008



The Natural Gas ETF UNG has to go down in history as one of the worst performers in 2008 and possibly 2009.

The downtrend, which started in June of 2008, still has not come to an end and those investors holding on for dear life may have hard time making up their losses.

Why bring it up now?

If an investor had followed the major trend such as I advocate, there would have been two opportunities to get out of this ETF with minimal losses or even profits, depending on the entry point:

1. The use of a trailing sell stop would have triggered a sell about 10% off the high (upper arrow) or

2. The breaking of the long-term trend line to the down side (lower arrow) would have been the final confirmation that a major trend change is about to occur; or is at least very likely.

Since you never know beforehand if one of your holdings is about to turn south in a big way, these simple techniques can make sure that your portfolio survives turbulent times in the market.

Disclosure: We currently have no positions in the ETF discussed.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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