Another Few Laps at Adult Swim; Chess Moves
I went long UGAZ at $2.42 with a protective stop-loss below $2.20.
UGAZ is the triple-levered long ETF for natural gas, derived from UNG, the straight-up natty ETF.
I have been fortunate to lock in some big wins in UGAZ this year, notably in February, despite the steep downtrend natty has been--As I have noted before some of the best rallies occur in bear markets.
They have not all been wins, of course, with respect to my UGAZ trades in recent quarters. But I have maintained stop-loss discipline with quick stop-outs and, ultimately, minimized my losers while capturing the big upside winners.
That simply myst be the case with a triple-levered high beta ETF like UGAZ, which is the quintessential "adult swim" instrument to trade.
As for the trade logic, the daily UNG shows the recent bout of selling may have been sellers' exhaustion as price tries to come rallying back up and out of the highlighted falling wedge (light blue).