Once again : Yeah... We stopped out but reentered near to the exact top. DGAZ = VelocityShares 3x Inv Natural Gas ETN It's still not crystal clear for a few people the difference between DGAZ and UGAZ. If you buy DGAZ it's the same when you short NatGas. It's outperforming NatGas as it's a 3x ETN.
A few of you were trying to catch the bottom in DGAZ during the last few weeks but you've noticed that it's an expensive game. As NatGas entered into a bull market the only time when we buy DGAZ is the intermediate decline. Especially when NatGAs is entering into the panic selling stage. During the last few days Natty just started the ICL decline. We are days away from the panic selling but don't worry it will come....
I highlighted with red arrows in the past when Natty entered the panic selling and you can see that is the time when DGAZ started to skyrocket. It's always after a dead cat bounce when Natty is breaking down an important resistance. Sometimes at these Natty dead cat bounces - when it's stronger than expected - DGAZ opens with a down gap before this rally starts. (blue arrow)
I will try to predict when we enter into the panic selling stage in NatGAs (most probably middle or end next week) by that time you have to be positioned in DGAZ. If you already have the position it's ok just don't stop it out when we open down with a gap in DGAZ on Monday or Tuesday. Manage the position size with care.
I set it as Neutral as we are selling NatGas and buying DGAZ....
Komen
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Finally DGAZ popped big by the morning. I have US natural gas november and US natural gas december. The november had a nice decline but december was frustrating till yesterday. Today as november was running out december has big gains also. Maybe that's the reason for the DGAZ pop. I tend to think we entered into the panic selling stage without any bounce. I told you natty is lovely on the short side in the ICL.
Komen
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DGAZ +15% gap open.
Komen
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Once it bottoms we will load up our trucks with Natty and it will be a fantastic long. Just like oil in the summer at the 200 SMA.
Komen
PowerOfCapital
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Dgaz's price is more following with Dec. contract so we see Dgaz under-performed NG.
Next Monday we will see big pop-up (34 cents around) since NG 100% enters Dec. contract. The bears no need panic at all.
PowerOfCapital
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archer08
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Thanks a lot for the charts. What's the D point? Is it a Bearish bat pattern?
PowerOfCapital
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I got wrong. Maybe NG contract will roll over to Dec. contract tomorrow?
PowerOfCapital
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Oct. 27 we will see NG soar up since we are entering Dec. contract.
DS77
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This is a very big factor in trading DGAZ... no one should trade it without understanding this aspect of DGAZ / UGAZ
PowerOfCapital
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That's true. Due to the Con., standing with DGAZ is much better.
DS77
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I loaded up DGAZ around 4.04 avg last week.. just riding out the pop now. Think DGAZ will print 6.00(ish). Opened a small position in UGAZ today. Only about 1/8 of a position or about 1/2 my DGAZ profits. I'll take my time legging in from here, but will be long NG via UGAZ as we bottom. Good luck!
PowerOfCapital
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Congratulation!
AlexBo6b3
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Have 7K shares right at 4.00 always added on any dips same as WLL ,PBR plan to keep it ..
Next Monday we will see big pop-up (34 cents around) since NG 100% enters Dec. contract. The bears no need panic at all.