Velocityshares 3X Long Natural Gas ETN (UGAZ)

[DrContango]

Lets clarify that to say the risk for downside momentum just increased by 250% ....

huh?

But thats Ok that is still meaningless or at least that is what the indoctrinated
(those who drink the Kool-Aid ) believe ...

Indoctrinated??? The behaviour of these ETPs is mathematically derived. Kool-Aid is reserved for those who believe that they are smarter than the scamsters running most penny stocks.

UGAZ is a derivative that behaves just as promised by its prospectus. Due to chronic decay dictated by contango and beta volatility, this ETN is doomed to follow an asymptotic path towards zero, interrupted only by reverse splits.

I'm pretty sure you can loose more than 100% with a leveraged ETF ...

Perhaps you need to brush up on your spelling as well as your mathematics. Please explain to us how one can lose more than 100% with a leveraged ETF.



Thanks,

Doc and (I assume) Griff