The Cold Snap Lit a Fire Under Natural Gas—3 Trades to Watch

Group 1 - The recent winter weather in the U.S. has led to increased demand for natural gas, with production at decade lows and rising consumption from power generation and data centers [2][5][8] - The United States Natural Gas Fund (UNG) has seen a nearly 20% increase in 2026, driven by a supply-demand imbalance exacerbated by cold weather [6][8] - Natural gas stocks are gaining momentum due to winter storms and tight supply, with UNG and BOIL providing tactical opportunities for traders to capitalize on short-term volatility [8] Group 2 - Generac Holdings Inc. is highlighted as a company benefiting from increased interest in backup power generation due to power outages during winter storms [4][8] - The UNG ETF is currently trading significantly below its all-time high from 2022 and 2023, following a sharp decline after the initial spike due to geopolitical events [7]