One more wise tidbitWith long experience trading NG & Oil ETF's I will suggest to you to keep track for news on HNU/HND and HOU/HOD on the Horizon's website for indicators on splits pre-emptive of which direction each commodity may go over 6 months average.
For those not aware with rebalance, and fee erosion snips these sometimes criminal''s (lol) take off these beta stocks (especially around rollovers, consolidations (either way) can occur as much as three times a year, usually February, June or July and November, and usually when one side up or down gets down below the 2.50 a share area.
So what does that mean?
Well in the case of NG, HND in the last month has been as low asd 1.90 and closed today at 2.14.
In the case of Oil HOD has been as low as 1.78 and closed today at 2.24
So a few days ago Horizon's announced it's list of beta's that will either split or reverse split this Friday. Interesting both HND and HOD should have been on this list for better trading for rebalancing purposes.
Guess what? (and these guys are almost never wrong as I'll attest to over 16 years running) Oil down,
HOD was on the list and will reverse split end of the week at 1 for every 4 raising the beta price to around $10.
And NG, HND is NOT on that list for a reverse split and we have been checking daily for some time now.
So I will speculate for you here off of the historical charts I/we keep and suggest that Horizon's expects oil to rise in price possibly substancially from current level with the consolidation, while without consolidation, they expect NG price to decline.
On a 10 year weekly chart for Natural gas on this current bounce from the previous 9.30 high area to the 5.50 low a I will speculate now that NG may likely peter out somewhere between as much as the $8 mark or to to an $8.50 high if correct, and then drop again to possibly as low as the $4.50 area into the fall shoulder season futures September/October before getting on the horse again.
No need to list which stocks then should outperform in anticipation and posting of 2nd quarter results. in this 3-4 month time period, other than to suggest those which are more heavily weighted oil vs ng should appreciate much better again in share price on results.
So as not to ruffle any feathers here there is no need to note which they might be out of lets say 6-8 iintermediates, if you do your homework on going, you likely know which ones quickly without me pointing them out.
I trust for those doing their DD this opinon proves to be a somewhat useful tool as another indicator, the historical facts rarely lie concerning the correlation between commodity and beta stock splits especially if still considering throwing some additional monies on various stocks that have taken the 30 to 40% haircut from highs on the May/June profit taking.
Cheers and good luck, let's all make some money not just watch and wait.