Uh-oh…you’ve probably noticed that gas prices are once again creeping higher, just in time for the driving season. As a motorist, it might have you cringing; but as an exchange traded fund investor, it might have you looking for an opening.

Gas has already crept up 5 cents a gallon, and it could go as high as $3 a gallon if those in the know are correct. Oil prices have also increased, to $82 on optimism about the economy, new tensions in oil-producing Nigeria and reports that China is building up its strategic reserves, reports Clifford Krauss for The New York Times.

European shale-derived natural gas could become a reality far sooner, and in far larger quantities, than markets expect.

In a Securities and Exchange disclosure from last Thursday, Chevron (CVX) confirmed that it won new rights to explore Poland for potential shale gas, although the size of the acreage was not divulged.

In last week's update we noted the absence of attractive ETFs. This week the model has turned even more bearish.

This is a good opportunity to discuss some of the characteristics of our model. The immediate recommendations are for short selling -- the inverse ETFs. As you will see, this is a tricky subject.