Velocityshares 3X Long Natural Gas ETN (UGAZ)

[Sgreg]

No sorry, don't know any that might have UGAZ shares to short. I don't like to use margin. I like using my own money so I put up with the decay when I play these velocity share tickers.

Nat gas was heavily shorted back in late winter and spring. A ton of covering has happened. The shorting and covering can be seen in the chart if one knows what to look for. That is what drove this whole giant Nat gas rally. Shorting doesn't get talked about much in the media. Media reports what they are told to report. The excuse being put out is that summer is hot. Summer is always hot and although this year may be hotter then normal the Nat gas fundamentals are still poor concerning supply and demand. This whole thing is short covering and nothing more. I look at that chart and it screams shorts got way over extended months ago and then got squeezed big time. That is what happened.

Short covering IMO however is nearing exhaustion and when that fades Nat gas will drop. I see a very typical short squeeze on a commodity when I look at the chart. Nat gas RSI now well over 80 and all other indicators over cooking big time. I am in DGAZ with a half position and down 4.5% but with Nat gas RSI and other indicators to extreme overbought levels as well as the Nat gas chart having a sizable gap up on Monday that has not filled yet I feel very confident that DGAZ will pay me nicely. Short covering is still ongoing however but I believe it is winding down. I feel very good about this trade.