Tuesday, May 13, 2008

Trade Update: DUG

We are going to hedge or DUG oil short play with OIL. We are short 1/2 position DUG, fill that one out right now @ 29.19. There is a nice saucer shape bottom forming on the inter-day chart so this is a good place to add to. I fully expect to get stopped out of OIL some time this week, but what I expect does not matter. the leverage here is about 2 to 1 OIL to DUG so we will go long OIL with a 1/2 position. The US dollar and geo-political events will be the drivers in this one.

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