Spectacular natural gas today, contango still dead, UNG to benefit

Natural gas is performing spectacularly today. UNG has risen over 4% and HNU over 7%.

As we reported a couple of weeks ago, there is no more contango up to the middle of 2011. This helps UNG tremendously. Of course is still depends on the price of the commodity itself, but it does no9t have to carry a 20%/month loss weigh.

This is the chart for HNU, the 2X ETF:

Here is the contango/backwardation" situation today:

There is backwardation until June. Looks good for UNG, which can act as a real ETF and even benefit a little from this.