Friday, January 6

Today the US rig count climbed again by 4, which was on the low side of the expected 3 to 7. This sent oil prices down somewhat, but had more of an impact on Natural Gas in combination with the warm weather outlook for January. Overall the NYSE energy index finished the day down .24%, down further than the rest of the NYSE which fell only 0.09%. The overall market grew today – the Dow Jones Industrial Average was up 0.32% in trading today, and this was reflected in our overall portfolio. Our energy holdings remain weak – the only winning positions in energy today were inverse exchange notes. We plan to resume positions in those beginning next Week.

Watching in today’s session we have decided that of the remaining oil ETNs, the Janus issues are for now at least the best option for short term exposure to oil prices. None of the existing notes will ever reach the 30 million daily volumes enjoyed buy UWTI and DWTI, but they are perfectly tradable as they are.

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