This week we have seen a significant price spike in “long” natural gas related ETFs.
For instance, First Trust ISE Natural Gas (NYSEArca: FCG) has rallied nearly 10% this week alone on the heels of the announcement that BHP Billiton (NYSE: BHP) would purchase Petrohawk Energy (NYSE: HK). [Energy ETFs Jump on Petrohawk Deal]
Petrohawk currently makes up 4.08% of FCG’s portfolio and is the second largest holding, so this acquisition has created a tailwind in the sector.
Direxion Daily Natural Gas Related Bull 2X (NYSEArca: GASL) has returned over 16% this week after surging above its 50-day moving average line.