This is a continuation of my 2020 bull rally theory, finding the best way of capitalizing on the potential opportunity in front of us is the next step.
DGAZ performed as expected in a bull rally, substantial losses are seen during the initial rally from cycle low to following heating season. The losses continued from initial high to monthly cycle high but the volatility would make holding very difficult.
Shorting DGAZ is a very viable option to take advantage of the initial bounce, it would be a bit volatile holding for the approximate 8 months expected. Closing and reopening the position based on the daily cycle would reduce the volatility and likely increase overall return.
DGAZ being a leveraged product has significant decay by shorting it this decay will be working in favor of the position.
DGAZ performed as expected in a bull rally, substantial losses are seen during the initial rally from cycle low to following heating season. The losses continued from initial high to monthly cycle high but the volatility would make holding very difficult.
Shorting DGAZ is a very viable option to take advantage of the initial bounce, it would be a bit volatile holding for the approximate 8 months expected. Closing and reopening the position based on the daily cycle would reduce the volatility and likely increase overall return.
DGAZ being a leveraged product has significant decay by shorting it this decay will be working in favor of the position.
I discuss the potential 2020 bull rally, UGAZ DGAZ and UNG