VelocityShares 3x Inverse is one of the financially traded notes provided by Citigroup Global Markets Holdings company. Investors should be trading the ETNs between 2:30 p.m. and 4:00 p.m., New York City time. During this period, due to delays in the publication DGAZ stock or DGAZ stock news at https://www.webull.com/quote/nysearca-dgaz of the closing level of the underlying index, there is expected to be uncertainty about the intrinsic value of the ETNs. The published Intraday Indicative Value will not be based on completely up-to-date information during this time. Trading prices during this time are likely to diverge from the Published Intraday Indicative Value.
The lowest price of this century
- Oil was not the only energy commodity that experienced lots of volatility last week. The Velocity Shares 3X Long Natural Gas ETN (NYSEARCA: DGAZ) and its bearish counterpart magnify the price action in the natural gas futures market.
- On Sunday evening, March 8, when these markets are opened in the US, the price of crude oil crashed. April natural gas futures are opened at $1.678 per MMBtu and proceeded to drop to another in a long series of lower lows.
The Fundamentals Are Bearish
- Inventories are going into the injection season and see stockpiles rise to over the four trillion cubic feet level by the start of the 2020/2021 winter season.
- Coronavirus has wreaked havoc in all markets. Every major event is including all major league sporting events that have been postponed, suspended, or canceled. People are working from and staying home.
- The energy sector is facing demand destruction while the Saudis are flooding the market with crude oil, and natural gas stockpiles are over 60% over last year’s level.
- Many natural gas and oil companies could find themselves facing bankruptcy as low-interest rates over the past years fostered a feeding frenzy of debt. The price of both oil and gas are the lowest level in years and servicing that debt could be becoming i
- Moreover, the state of the bond and stock market mean that producers in financial trouble may have nowhere to turn in the current environment.
Trading with UGAZ and DGAZ
- Falling knives in markets across all asset classes have made natural gas look tame by comparison.
- The natural gas market faces bearish fundamentals and speculative bears looking to push the price to even lower lows.
- At the same time, the end of the withdrawal season and an overabundance of shorts in a market where marginal calls from other markets could force them to cover risk positions. You can gain Nyse Maxr news at https://www.webull.com/quote/nyse-maxr .