Natgas, HNU update

See our post of April 18, 2012,  under Natgas, HNU and Gas. The last one we could not find anymore, it is the Claymore ETF but the two others will suffice. Here are today’s charts;

Natgas jan 24 2014HNU jan 24 2014

There may well be a lot more to go, but we do not like the speed at which things have gone up recently and also we do not like the DJ Titans Gas 30 index. So we recommend stepping aside. On both you have easily doubled your money in just under two years, which, using the rule of 72 amounts to a return of 36%, compounded per annum. Note that the RSI and the MACD are not confirming the higher prices. Also, on the futures, there is a fairly large premium on the front (spot) contracts but that quickly turns around when you go out further in time (backwardation) all of which points to lower, not higher prices in the future.