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BetaPro Natural Gas Leveraged Daily Bull ETF T.HNU

Alternate Symbol(s):  HNUZF

HNUs investment objective, is to seek daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to up to two times 200 Percentage the daily performance of the Horizons Natural Gas Rolling Futures Index the Underlying Index, Bloomberg ticker CMDYNGER. HNU is denominated in Canadian dollars. Any US dollar gains or losses as a result of HNUs investment are hedged back to the Canadian dollar to the best of its ability. The Fund To be successful in meeting its investment objective during the period, HNUs net asset value should have gained up to two times as much on a given day, on a percentage basis, as its Underlying Index rose on that given day. Conversely, HNUs net asset value should have lost up to two times as much on a given day, on a percentage basis, as its Underlying Index declined on that given day.


TSX:HNU - Post by User

Comment by tim9525on Mar 01, 2011 6:37pm
264 Views
Post# 18215648

RE: Divergence between oil and Nat gas:

RE: Divergence between oil and Nat gas:With $100+ oil and a declining $USD, there is little downside to NG no matter how they manipulate especially NG is already so low. NG producers increased production last year upto DEC 2010 when oil was trading between $70 to $90 but for most part of 2010 between $70 and $80. Large NG producers which hedged their entire production in 2011 did not account for the increase in cost due to high oil and gasoline prices and low USD. Since they hedged their production so cheaply, they cannot make money or even have to lose money producing NG this year. Therefore, it's not likely they will inject the same level of NG into storage this year. As production decreases and inflation due to USD devaluation, NG should go up this year. I don't understand why the MMs are shorting at this level since there isn't much downside but how long can they suppress NG at this low price.
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