Natgas, HNU

Natgas fut jan 1 2015HNU Jan 1 2015

Natgas 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 HNU, 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 HNU. To put the present value in a historic perspective below are two longer term charts for the futures and HNU;

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.