Others could answer your question better than I can, but I think you have it right. DGAZ is in the front month contract or the first five business days of the month, which trades closest to the cash price, and is the most volatile contract. DGAZ then transitions out of the front month contract over the next five business days until it is entirely in the next month 10 business days after the month begins. If DGAZ had been in the March 14 contract recently, its price would have swung much more wildly. Probably below $2 when the March contract surged above $6.
Nat gas is down this morning so far. I think the withdrawal report tomorrow is going to disappoint many.
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