HOU - Fundamentally Operating Again...Well, after a few crazy weeks, oil seems to, at the moment, found it's legs and has stabilized.
HOU, with subscriptions back on, is now properly tracking it's underlying asset, Sep2020s.
Trading bias will be eliminated daily.
Still see too many posters thinking trading volumes (buy/sell) will move the value of HOU like stocks. HOU is not a stock, it is an etf that tracks the performance of an underlying commodity. It's daily performance will track the daily performance of it's currently held oil futures contracts. The trading bias will occur in the contract trading, not the etf trading.
Not perfect, 1X instead of 2X still stings as oil rebounds. However, it was a required move to save the etf. Hopefully as volatility decreases Horizon's will be able to re-establish the leverage soon.
Contract rollover dates and new month holdings, is still unkown. I'm sure Horizon will communicate shortly what their plans are to get HOU back to 2nd contract holdings, or at least a revised rollover schedule.
Remember, over time, HOU will not properly reflect the performance of the underlying contracts, only daily. Volatility, fees, currency hedging and rollover adjustments (contango/backwardation) all contribute to this being a more accurate trading vehicle then a long term investment.
GL