Velocityshares 3X Long Natural Gas ETN (UGAZ)

[dude iligence]

NG use to have big rallies during Hurricane season because most of the Production came out of the gulf area. Now most of the production is coming from land locked states so the storms in the gulf have little to no effect.

If I could make only one trade per year it would be NG. The Big NG rallies are on the anticipation that Its Gonna Be A Long Cold Winter Its not the actual cold wx but the anticipation of it. Farmers Almanac is predicting a long cold winter. The huge NG rally last year has stoked interest this yr so I expect a lot of newbies will be here to climb on board. We might see a good short covering rally if the herd shows up. By the time the cold wx actually gets here the rally will be over cause NG will be looking 1-2 months ahead. When the AC units are off and the Heaters arent needed is when NG storage builds are the biggest. This is usually a good time to buy a long position in NG. Timing of entry into any 3x leverage trading monster is critical due to the absolutely horrendous bleed. The idea is to catch it just before or at the beginning of an uptrend. In a sideways range bound market short term flips can make money but the bleed can resulting in losses in relatively short periods of time. Best case is NG rallies for an extended period day after day. NG is always a fwd looking trade contract roll, UGAZ/DGAZ roll, chart roll, contango many factors at work. There are so many factors in the NG trade that take literally years to fully understand and get a feel for. NG isnt called the widowmaker for no reason. Then there is always the Sunday Bloody Sunday events that can result in 30% drop in UGAZ or DGAZ on a Monday Morning. I have made lots of money trading UGAZ/DGAZ but Ive seen $80k drop in one afternoon I went jetsking. This is not for the inexperienced or weak at heart.