TRADING POSITIONS
We have slightly reduced our short exposure earlier today, but we are not adding any new long positions (just yet). So far, the return on invested capital in May has been 4.70% in futures and 6.0% in ETNs (see the tables below).
THE WEATHER
Last week, the number of heating degree-days (HDDs) plunged 37%, as weather conditions warmed up across the country. However, heating demand was still up y-o-y. We estimate that total energy demand (as measured in total degree-days – TDDs) was approximately 11.0% above last year’s level.
This week, the weather