Thursday, June 5, 2008

Trade Update: DUG

If there's anything to a name, then the UltraShort Oil & Gas ProShares trades inversely to oil and natural gas. Take a look at OIL in the daily chart, after it seemed that it would never come down it now shows not only a clear topping process, but also a nice downtrend line from the high 80.00 to the current price of about 73.52. OIL is up today, but the trend is now south. Now look at the stubborn natural gas component of DUG. The daily chart of the UNG shows that it is in the same place oil was last month, refusing to retrace, but it will, all the bubble commodities will retrace temporary. When they do DUG will run. I think for safety sake though that you should consider the long/short number to be 30 on the daily for DUG

1 comment:

L said...

I don't think there is anything in a name. Check these links out about dug -

http://www.proshares.com/funds/dug.html

http://www.proshares.com/funds/dug.html?Index

http://www.djindexes.com/mdsidx/?event=showTotalMarket