Where I Will Accumulate UGAZ: 3X Long Natural Gas ETF
Posted by Gareth Soloway Monday, January 09, 2017, 12:21PM ET
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Natural gas is taking another beating today, dropping by over 5%. As it comes crashing down, many investors have asked me where I would buy the commodity. More specifically the UGAZ, the 3X Long Natural Gas ETF. When it comes to finding major support, I always look at the single ETF. This is because it does not lose such massive value over a small period.
As everyone should know, all triple and double ETF's always head to zero quickly. They are only short term trades. For natural gas, I analyzed the United States Natural Gas Fund, LP (NYSEARCA:UNG). It is trading at $7.80 but does not have major support until it gets into the $7.00 to $7.15 range. Once the UNG gets to this range I will be a buyer of the UGAZ, expecting a sharp bounce and able to multiple my gains 3X. This will be a quick bounce and not something you want to marry for months.
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