Equity markets continued a strong week on Wednesday, as most major benchmarks posted small gains. Volatility in natural gas prices continued Wednesday, as the United States Natural Gas Fund (UNG) shot up almost 1.4% on expectations for higher prices next year. At the World Business Forum in New York City, legendary investor T. Boone Pickens said he expects natural gas prices to average $7 in 2010 and $9 in 2011.
Pickens, known for quipping “I’m for anything American!”, has been waging a war to foreign oil dependence, developing and promoting a plan to mandate that heavy duty vehicles built in the U.S. use natural gas.
Meanwhile, VXX continues its freefall as volatility benchmarks continue to decline from record highs in late 2008. The iPath S&P 500 VIX Short Term Futures ETN (VXX) has dropped almost 7.5% this week as expectations for future volatility in U.S. equity markets has dropped off.
Disclosure: No positions at time of writing.