BetaPro Natural Gas Leveraged Daily Bull ETF T.HNU

Bullish for HNU!!! 5.25 forecast for November

[patpostro]

https://www.ogj.com/index/article-display/6166871410/s-articles/s-oil-gas-journal/s-general-interest-2/s-economics-markets/s-2009/s-09/s-market-watch__oil1.html

Natural gas
PritchardCapital Partners noted, “The United States Natural Gas Fund suspendedissuing new shares on Aug. 12. On Sept. 11, the fund said it wouldstart reissuing a limited number of shares on Sept. 28. Since the Sept.11 announcement, natural gas has rallied from $3.25/Mcf to $3.95/Mcf.It is possible that the natural gas rally is due to traders positioningthemselves ahead of the Sept. 28 date; however, the immediate frontmonths of natural gas [on the New York Mercantile Exchange] suggest therally could continue. October NYMEX natural gas closed at $3.95/Mcf andNovember NYMEX natural gas closed at $4.89/Mcf—the last trading day forthe October NYMEX natural gas contract is Sept. 28. It would seemreasonable to expect this spread to contract dramatically and prettyquickly.”

Analysts at Energy Solutions Inc., Verona, Wis.,said, “The natural gas price rally seems to have been prompted by asurge of speculative short-covering and not a change in the underlyingfundamentals. The daily price volatility is the highest it’s been sincethe collapse of Amaranth Advisors in September 2006 [Amaranth AdvisorsLLC collapsed after losing $6 billion on natural gas futures in one ofthe largest hedge fund collapses in history].”

While economicdata seems to point to better times ahead, at some point both the oiland gas markets will realize there is plenty of supply at to meetdemand, said Energy Solutions analysts. “We believe that turning pointwhere perception meets reality will occur at some point in the next30-60 days. That means, we expect the upward momentum to continue for awhile longer especially because the value of the US dollar has declinedto 2009 lows against the euro, and that helps crude oil prices to movehigher and because trading volumes are at near record levels probablybecause speculators have decided the time has come to cover their shortpositions.”

They acknowledged, “There is a lot of power andmoney in the market right now, and that needs to be respected, nomatter how illogical you may think it is. The November 2009 natural gasNYMEX contract is likely to test $5.25 within the next 2 weeks, butironically, that will also fulfill the expectations for the fourthquarter rally. Per our prior recommendations, buyers should havesufficient natural gas purchased through December 2009 to feelcomfortable waiting out this rally. However, for those still in need ofsupplies for this period, we adjusted our buying targets last week.High risk buyers should remain on the sidelines for now as we believetheir best opportunity for long-term buying will be in conjunction withthe first quarter decline.”