Wednesday, 29 January 2014

UGAZ, DGAZ - huge increases in trading volume

With continued severe wintry conditions across much of North America, Natural Gas prices have again soared. The 3x leveraged instruments of UGAZ (long) and DGAZ (short) closed an appropriate +32.5% and -31.1% respectively.

UGAZ, daily

DGAZ, daily


*I can't recall ever covering Nat' Gas before, but with the sharp jump in prices, and the icy cold across Canada/USA, I thought it merited a mention.

First..a reminder on Nat' Gas...monthly (non-log chart)

It remains notable that despite a huge gain of almost 30%, Natural Gas prices are still less than half of what they were in 2005 and 2008.

As for the 3x UGAZ and DGAZ instruments, they sure are attracting a lot more trader attention lately, with phenomenal increases in trading volume.. especially in DGAZ.

As ever..such instruments are for short term holds only, due to the usual statistical decay issue.

*the EIA natural gas report is due tomorrow at 10.30am. That will likely increase the gas chatter even more in the finance world.