Natgas, HNU

Natgas fut jan 1 2015HNU Jan 1 2015

futures are showing a potentially serious buying opportunity. Given all the overlap, at various degrees, and the fact that this is in all likelihood a 5th wave, the most probable pattern is that of an expanding diagonal. If so, then a rather violent retracement, most often right to the start, should follow. This would be in synch with our view that oil has or will bottom soon and will rebound for a few months.

    The best way to play this is by purchasing the , the Horizons Beta Pro 2X Natgas Bull ETF. We have played this game very successfully  before and believe this is the time to do it again. See previous blogs for . To put the present value in a historic perspective below are two longer term charts for the futures and ;

Natgas jan 1 2015 vbHNU jan 1 2015 b

Clearly we are closer to the bottoms than the tops, all we need now is a little chill which we are actually getting as we speak.