Velocityshares 3X Long Natural Gas ETN (UGAZ)

[researcher59]

UGAZ -4.68 to 18.95, a huge 51% correction from the high of $38.87 just last week .... I don't think anyone saw that coming. I think the selloff is overdone, but maybe NG will go even lower on momentum as traders bail out of long positions in the futures.

Evidently traders are now focusing on the negatives ....

LNG demand is plunging due a NatGas glut in Europe and Asia

The COVID-19 crisis has hurt heating, cooling and electric demand.

There's a GIGANTIC $0.25 contango as the June/July rollover is in progress, a big headwind for UGAZ. Normally it's just an $0.04 contango for June/July.

Oil prices are firming.

Cold weather and late season heating demand is done.

NatGas production is coming down slower than most expected and is still up y/y. I thought it would be down y/y by now, but nope, it's still up.