Tuesday, January 4, 2011

Natural Gas Shoots Higher: HNU to Jump Today; Contango Alleviated Today

Natural gas climbed higher yesterday and UNG rose over 5%. Because the TSX was closed, HNU was not traded.

This morning, natural gas February contracts continue to move higher to $4.68. If this continues, at the open, HNU should jump over 10%, possibly 12-14% since its last price of $6.67.

Note however, that contango's ugly face is showing up again, which is very bad news for UNG, although the situation today is slightly alleviated until June/July contracts. Contango is terrible news for UNG.

Disclosure: long HNU.

Stumble Upon Toolbar

No comments:

Financial TV

Blog Archive

// adding Google analytics