Dion's Weekly ETF Winners and Losers

The S&P 500 added 2.6% this week and finished with a small gain. This market has put together impressive gains in September, but the daily moves remain quite small, with the past five days showing returns of 0.6%, 0.3%, 1.5%, -0.3% and 0.3%.

Traders continue to pile into (and out of) the same sectors, with natural gas and REITs showing up again in the winners and losers, while the dollar, Japanese yen, and long bonds continue to lag.

Winners

United States Natural Gas(UNG) +9.9%

iPath Natural Gas(GAZ) +10.5%

First Trust ISE-Revere Natural Gas(FCG) +4.7%

The premium on UNG narrowed substantially this week after the firm announced it would issue more shares as of Sept. 28. This caused it to lag GAZ, which still has a premium of 8.9%, much higher than the 5.6% on shares of UNG.

The Energy Information Administration attributed the rise in natural gas last week to optimism over the economy, even as inventory continues to grow. Traders may get a respite from the weather, however, as unseasonably cool weather that reduced electricity demand for air conditioning this summer will increase demand for home heating this winter if temperatures stay below trend.

There's also the possibility that the announcement that UNG would issue more shares has led to optimism in the market, but a quick check of the price of natural gas futures alongside the rise in UNG's assets shows the fund, while generating major contango, isn't powerful enough to fight the trend.

Market Vectors Coal

(KOL) +7.5%

Coal prices are expected to stabilize or rise in coming months. Mine closures in China have cut the supply of coking coal, while steel production should keep demand steady. The rebound in natural gas doesn't hurt either, because natural gas is competitive with coal on price.