Long NG - Short $XNG

Seems set up for a nice trade.
NG is trading below the Oct 10 low while the $XNG is well above it. Don't know which way the gap will close but It will close eventually.

 

Here is a visual of it.............

 

BTW, similar setup in CL/$OIX currently.

 

how do you play ^XNG? You can't short index outright...

 

I personally use options on one or more of the components of the index.
For example, one of my accounts has UNG calls and SWN puts.

Or you could just use options on the index itself (sell calls or buy puts).