Trading Positions
We have reduced our short exposure earlier today and have slightly increased our long exposure. So far, the return on invested capital in May has been 9.00% in futures and 4.90% in ETNs (see the tables below).
Technicals
Earlier today, natural gas July contract has broken out of an ascending wedge (see the chart below). Should this technical pattern perform according to the textbook, July contract is heading towards $2.560 per MMbtu.
Source: CME Group
The Weather
Last week, the number of heating degree-days (HDDs) increased by 9.0% w-o-w, as weather conditions