ETFs, Leveraged ETFs, Sector Funds

[No-Quarter]

The pertinent bit from this morning's update. GLTY -

Overall, the natural gas sector is looking increasingly bullish heading into the heating season with short-term concerns regarding a large storage surplus overruled by what appears to be a very tight winter supply/demand imbalance. Near-term it is certainly possible that natural gas could pull back some, with the November contract trading down to $2.65-$2.75/MMBTU. However, should the EIA continue to report bullish injections, any such pullback will be a shortlived and represent a buying opportunity. I am maintaining my upside $4.00/MMBTU wintertime price target, which represents +18% upside from January 2020’s current price. Longer-term, I expect that market will remain tight well into 2021 which will eventually result in a significant upward revision of the Spring and Summer 2021 strip, which is current priced in the $2.70-$3.00/MMBTU range. Natural gas E&Ps largely sat out last week’s rally but, should the current tightening trend persist, many of these long-beaten down companies have significant upside potential. I remain long EQT, SWN, and COG.