Dig This: UltraShort Oil & Gas ProShares

by Sam Collins   10/03/08
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UltraShort Oil & Gas ProShares (DUG) -- This Exchange-Traded Fund (ETF) seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones U.S. Oil & Gas Index.

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When a huge bull-market spike in July drove crude oil and other energy commodities to new highs, this ETF fell to new lows but within six weeks established a quadruple-bottom with four Collins Bollinger Reversal (CBR) buy signals.

Since then, oil has fallen and DUG has risen, flashing one positive signal after another: Note the 'gold cross' (a 50-day moving average over a 200-day moving average) in September, a stochastic buy last week, along with one of our own CBR buys.

This chart has a near-term price object of $55 with much higher prices likely.

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Sam Collins can be reached directly at samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.

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