Replies to post #18288 on Velocityshares 3X Inverse Natural Gas Etn (DGAZ)

[researcher59]

I've posted several past price moves. DGAZ is underperforming. Clearly you don't understand the futures market or how DGAZ works.

Did you even realize that the May NG futures are trading at a $2 discount to the front month ? Do you understand the implications that has on DGAZ ?

If NG is trading at $3 in May that represents a move higher, not lower !

[researcher59]

How about this price move ??? Any thoughts ?

NG peaked last Wednesday at $4.92/mcf and DGAZ hit a low of $2.81 at the same time.

Now just 3 trading days later NG is $4.58, DOWN 7% from the peak last week .... hence the simplistic view is that DGAZ should be UP 21%.

Is DGAZ up 21% from $2.81 at this point ? It would then be at $3.40. Instead its now at $2.68, DOWN 5%.

The under-performance is horrible ! Instead of being up 21% DGAZ is down 5% due to decay and daily resets.