Larry Berman CFA, CMT, CTA
HBP NYMEX Nat'l Gas Bull+
HNU-T
DON'T BUY
Apr 17, 2017
A double leveraged play for Natural Gas. Future prices of gas are already in this. This is fine for a short term trade of a week or two, but you need to understand the forward nature of the curve. You need more increase in gas prices than the futures contracts predict. He does not think there will be a big boom in Natural Gas this summer. ZJN-T is junior companies and is a better way to play gas.
It is a leveraged natural gas ETF. It could be a good trade if you are well-versed in it, but you should not hold it long term at all. It is a tool for short term speculation.
Over long periods of gas, there will be a natural decay in net asset value. Short term trading could pay off. Buy high and sell low. Natural gases are doing well right now, but he would prefer to play it through ETFs and equity exposure. Natural gas is a relative winner in the next few years. There has been significant under investments.
Leverage play for natural gas. Clearly getting a breakout in the short term. Thinks oil is capped out and natural gas should trade relative to oil. Can see front month natural gas contracts going for $5. Forward pricing looks like there is room into next year to move further up. An okay way to do it if you can handle leverage. Not for a long term buy and hold.
More of a short-term trading instrument. Definitely don't just park money in it, money gets lost in it every time there's a move. Instead, play via a TOU or even some of the US pure-play nat gas producers.
Complicated product that are not meant for average investor. Must be watched daily. Not a linear response to natural gas prices. Would not recommend for the long term investor. High volatility.
A double leveraged play for Natural Gas. Future prices of gas are already in this. This is fine for a short term trade of a week or two, but you need to understand the forward nature of the curve. You need more increase in gas prices than the futures contracts predict. He does not think there will be a big boom in Natural Gas this summer. ZJN-T is junior companies and is a better way to play gas.