UGAZ Nat Gas Leveraged ETF +5% in our Friday Trade
by Mike Paulenoff
July 1, 2017 • 12:00 AM EDT
Last week we noted our 5.6% trade in the SPDR S&P Biotech ETF (XBI). We continued to be bullish on the XBI, and had a target of 79-80.
This week the XBI met our target and then some, reaching 80.89 before closing the week at 77.18.
There's a risk down to the recent upside breakout in the 73-71 area at some point, which, if it contains the weakness, could provide the launchpad for a thrust towards 100 in the very big picture.
Another sector we follow closely is Natural Gas. On Tuesday of this week we told our members to watch for movement off of Wednesday's release of weekly Nat Gas inventories.
We noted that the release could trigger a downside stop-fest that presses Nat Gas back under 3.00, into the 2.90 area support, where my work argues in favor of establishing or adding new long positions ahead of upside potential again into the 3.30-3.40 target zone.
On Wednesday's release, Nat Gas initially popped to challenge June resistance at 3.10-3.11, but stalled there and a bit later in the session pivoted to the downside into a nosedive that violated nearest term support at 3.066.
As it dropped towards our preferred support area, we added a position in the VelocityShares 3x Long Natural Gas ETN (UGAZ) on Friday at 13.17. By the close, the UGAZ was at 13.82, giving us a +5% yield on our trade for the day.
Have a great weekend!
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
In the early afternoon on April 11, this was my note to our members:"IBIT (iShares Bitcoin Trust ETF)-- From a trading perspective, anyone who is in sync with the Bitcoin setup might consider owning IBIT (iShares Bitcoin ETF) against a stop below its 4/07/25 low at 42.98 (see my attached Daily Chart below)...
Last Thursday (4/17/25) afternoon, ahead of NFLX (Netflix) post-close earnings report and the three-day Good Friday holiday weekend, we discussed the technical setup and whether or not the NFLX pattern was positioned to react positively to the news : The NFLX setup heading into Earnings later today is favorable for upside continuation above the prior two rally highs at 993.45 (4/15) and 998.70 (3/25), but not to a new ATH above 1064.
Last Thursday afternoon (4/10/25), the commentary below is what I discussed with MPTrader members about my Big Picture technical setup work: Tomorrow is the final session of the week. We get some big bank Earnings and PPI before the open, and more than likely, one or more POTUS televised events that undoubtedly will move markets one way or other. Technically, tomorrow's (Friday) close will be important to my Weekly Chart Work.
At the beginning of last week, fellow members Rayray and GordonGekko asked for my technical setup work on BX (Blackstone Inc). This is what we discussed on the morning of March 25, 2025:My attached Daily Chart shows the November 2024 to mid-March 2025 correction (-32%) followed by the recovery rally from 135.60 to 153.18.
On March 10, 2025, fifteen minutes before the closing bell and Oracle's forthcoming Earnings Report, below was the analysis I posted to the MPTrader Discussion Room about ORCL:"... My preferred scenario indicates a negative reaction to the news that sends ORCL reeling to test important support at 139.50-141.20-- where ORCL MUST reverse to the upside to avert triggering still lower projections into the 118-123 (back the truck up) target window... Last is 149.32"...