Down on HNDI've been trading HND daily because of the huge SP swings so you can watch NG (natural gas) head higher and the shares of HND head lower and vice versa so you trade it like currency but I'm always holding a lot of shares of whatever I'm trading so as HND headed lower because of NG jumping up close to $0.50 I bought shares of HND to average down but because it spiked up so quick my holdings are down over $40K but the nice thing about HOD & HND is the fact that they both are guaranteed to head higher when Gas & Oil head lower due to a slowing global economy which is coming as soon as all the Rate Hikes start to take hold so I'm not worried one bit and that's the difference between a company SP and a Bear ETF because a company can not assure you that the SP will ever head higher. Right now NG is in an uptrend so finding the top is where the pay is at so you have to be able not to need access to your investment because you might have to hold awhile. NG is riding high firstly today traders wanted to push up the price of all energy commodities but the real reason for the surge in NG is because Russia has shutdown their main gas line that feeds Germany and Europe for maintenance which is supposed to be restored by July 21st but there are doubts that it might not be 100% restored but Russia also knows that if they suspend it longer than G7 will add more sanctions to them and they're starting to lose $Bil from Gas revenues so I feel that it will be restored and then NG will start trading lower plus all the European States are filling huge underground storage units for the winter and Germany is firing up all their coal-burning plants to avoid any dependence on Russia and it will get to a point when there are excessive amounts of NG cutting down on the demand combined with a slowing global economy we could see NG trading down $3 next year 5 months away and HND SP will be at $12+ You can see where the SP was before 2022 Bullrun on NG. To be safe if you're looking to buy and hold then wait till NG starts to do a reversal and I'm only using money that can sit as long as I know that we'll be back to $5 - $3 NG and then its payday. With a slowing economy and 100's of new gas wells coming on line over time we could have such a surplus of gas that it could head below $3 JMHO (always DD)
Henry Hub prediction doesn't completely calculate how a recession could drive it lower because we can't properly calculate without knowing how deep the global recession will be.
US Energy Information and Administration release from July 12th
- We expect the Henry Hub spot price will average $4.76/MMBtu in 2023
Here's a year chart on HND so you can see the upside from $2.28
