Dig Dug

Someone asked me why I hold DUG in the commentary of one of my posts. Fundamentally oil is overspeculated. It is in a bubble mode. The demand is falling in the US, still the largest consumer of oil. The dollar has started to gain some stability at least for now. Yet oil still goes up.... at some point it has to burst... but where do you draw the line in case it goes insane and where's the best entry point? That's where the technicals become important.....

Technically if you look at DIG you see that it has formed now a triple top at 115. Iran threatens to reduce oil exports their huge cash cow? Sure... and Dick Cheney is going to give all his money to charity...


A great place to buy DUG or Short DIG when DIG approaches 115. If it passes 115 on volume just exit the short on DIG or the long DUG with a tight stop a bit over 115. It's called low risk/reward... Just BE SURE that you don't forget to set the stop if you don't have time to watch it and watch it closely if you have the time to do so...

This blog is for informational purposes only. It does not give investment advice.