Keep an EYE on natural gas

Natural gas is extremely low and looks like it is stabilizing for the short term swing (as in take profit after a small gain). We are in the winter season and last thursday, the EIA natura gas report shows that it rose less than expectation. Oil prices has been rising, therefore, natural gas may start looking more and more attractive.

However, Horizons BetaPro NYMEX Natural Gas Bull Plus ETF (HNU.TO) consolidated the units of the ETF 1:4 ratio on Nov.22,2011. Back in history, whenever it consolidates it normally goes down when it is announced, then up a little the day before and the day after consolidation occurs, and then falls even more.

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