FX:NGAS   Natural Gas (Henry Hub)
1370 20 39
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             ....



Comment: 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.
Comment: DGAZ +15% gap open.
snapshot
Comment: 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.
Have 7K shares right at 4.00 always added on any dips same as WLL ,PBR plan to keep it ..
+1 Reply
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. 
+3 Reply
watsonzou26 watsonzou26
NG:Next Monday chart
+2 Reply
archer08 watsonzou26
Thanks a lot for the charts. What's the D point? Is it a Bearish bat pattern?
Reply
watsonzou26 watsonzou26
I got wrong. Maybe NG contract will roll over to Dec. contract tomorrow?
+1 Reply
watsonzou26 watsonzou26
Oct. 27 we will see NG soar up since we are entering Dec. contract.
Reply
DS77 watsonzou26
This is a very big factor in trading DGAZ... no one should trade it without understanding this aspect of DGAZ / UGAZ
Reply
That's true. Due to the Con., standing with DGAZ is much better.
Reply
DS77 watsonzou26
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!
Reply
Congratulation!
Reply
The rollover contract open a huge gap. Will do down?
Reply
Boom! Very nice call! Since Natty moves so fast, time to look for the bottom to take profits. Your earlier idea was NGAS around $2.50 or the 200SMA. Is this still your target?
Reply
yes
+3 Reply
Arpi,
What in your opinion could be the target TP in NatGas?
Reply
Lets see todays close but I think we enttered into the panic selling.
Bottom is oming next week around 2.4-2.5$
+2 Reply
ArtFly chartwatchers
Thank you
Reply
watsonzou26 chartwatchers
Great!
Reply
ice_holly01 PRO chartwatchers
Cool, thanks.
Reply
HUGE DGAZ candle today. Biggest one all year.
Reply
Panic selling in Natty. Panic buying in DGAZ.
Reply
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