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.
*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.