Trading Vehicles Only or You Can Kiss Your Money Goodbye

The price action in natural gas of late is a good reminder that highly-levered ETFs such s UGAZ (triple-long natty) are designed to be trading vehicles only, rather than buy-and-hold for a retirement account. In addition to the leverage, the ETFs suffer "decay" with the way they are structured. I was fortunate to sell UGAZ right at its November highs for a good win, and had no idea of the subsequent swoon. But, still, the reminder is noteworthy when we see the way in which natty has been pounded since then. Natty may be close to a bounce, but I have not seen nearly enough evidence to dive in for it. Elsewhere, ACHN continues to impress with biotechs, a name we have looked at repeatedly as a long idea. On the other hand, major biotech GILD looks to be breaking down and confirming a weekly chart topping pattern. As you might imagine, due to the GILD action the IBB biotech ETF is notably lagging the tape this morning. I am also still watching CORN for an add point today.