Velocityshares 3X Long Natural Gas ETN (UGAZ)

[Rock_nj]

There is a brief warmup expected early next week and then temperatures are expected to be seasonably through the first half of December across most of the U.S., which means continued nat gas draws, but more normal sized ones. The draw next Thursday that covers this week is going to be big.

The question about the warmup is whether it has already been factored into the current natural gas price? Nat gas traders tend to look out two weeks, so it is likely factored in already. There are signs of a major cold outbreak the 2nd half of December that we'll have to keep an eye on. If that becomes likely, then nat gas will likely rally to the next level at $5+.