I think the x3 "inefficiency over time deterioration" with UGAZ
may lead using UNG to more accurately look at the nat gas
situation, just my IMO, I'm a newbie here. Thanks.
All those ETFs tracking Commodities are truly messed up, and I
agree, more so the 2x and 3x ... tons of erosion ... contract
rolls alone kills them over time ... look at the contango on NG,
pretty steep curve ... especially betwen March and April ...
heavy volume is needed to mitigate damage on a lot of those
ETF's // I learned the hard way. Believe me. Remember Fat Freddy
Finger? Believe me, I learned the hard way.
if you use UNG, the "right shoulder" is WAY higher
UGAZ
Posted by ottinger44falc on 4th of Feb 2014 at 11:13 am
I think the x3 "inefficiency over time deterioration" with UGAZ may lead using UNG to more accurately look at the nat gas situation, just my IMO, I'm a newbie here. Thanks.
All those ETFs tracking Commodities
Posted by mla127 on 4th of Feb 2014 at 11:18 am
All those ETFs tracking Commodities are truly messed up, and I agree, more so the 2x and 3x ... tons of erosion ... contract rolls alone kills them over time ... look at the contango on NG, pretty steep curve ... especially betwen March and April ...
They are design to go
Posted by murphy12 on 4th of Feb 2014 at 07:07 pm
They are design to go to zero. Best example is VXX.
Title: heavy volume is needed
Posted by hweinstein4 on 4th of Feb 2014 at 01:08 pm
heavy volume is needed to mitigate damage on a lot of those ETF's // I learned the hard way. Believe me. Remember Fat Freddy Finger? Believe me, I learned the hard way.
agreed, UNL has (usually) less of a contago deterioration
Posted by ottinger44falc on 4th of Feb 2014 at 11:21 am