Replies to post #2038 on Velocityshares 3X Long Natural Gas ETN (UGAZ)

[Jld3294]

A main reason is because the stock price is now $4 and not $16 like last year so for every 4 shares traded today in volume it would've only been 1 share traded a year ago.

[MJ moneymaker]

I think the volume increase is in part due to much lower price than we had a couple of years ago. Since we're trading at $4 instead of in the 20's or teens then to do the same dollar volume more shares have to be traded.

I also think many were attracted to UGAZ (myself included) by the nice run it had last winter and expected similar this winter. Unfortunately a warm December put a damper on things.

As for future performance I would hope we are near bottom here for the winter. I won't go into price predictions as I honestly don't know what is going to happen. i would hope to see this back at 7 or 8 going into February and maybe higher if we see colder weather for an extended period of time. Things to keep an eye on are storage levels and the extended forecasts.

Below are 2 links to extended forecast resources and the last is the weekly natural gas storage report which is updated every Thursday at 10:30 a.m.

http://www.accuweather.com/en/us/national/weather-forecast-maps?day=15

http://www.cpc.ncep.noaa.gov/products/predictions/

http://ir.eia.gov/ngs/ngs.html

The storage reports have been the key to the decline lately as storage went from a significant deficit to coming very close to the 5 year average because of higher production and less consumption due to warmer weather.

I'm not the most knowledgeable here but I hope this info helps. Some people who do seem to know leveraged etf's such as this one are Rock_nj, dude iligence, and HHHG. Keep an eye on their posts. Good luck to you.

[ChicagoGolfer12]

UGAZ is more for trading than investing. Gotta be careful with these 3X etfs, they decay and are volatile.