The trading diary of Paul J. Singh. I trade full-time and empower traders by making the complex simple. I can be contacted at SinghJD1@aol.com
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Wednesday, May 21, 2008
DUG Divergence
Take a look at the DUG chart below. Notice that RSI has made a higher low while price action has made a lower low. The ETF, which is short oil and gas, is also extremely oversold. I took a small position this morning.
I've been trying to research this fund to see how and how well it meets its objective of returning twice the inverse of the DJ Oil & Gas Index.
ReplyDeleteLooks like they credit default swaps to do this.
Do you think this is a good vehicle for shorting oil?
Nice.
ReplyDeleteI took a long position in DUG today as well.
I highlighted my entry on my blog today.
Nice call here. I put in a limit order on the DUG yesterday afternoon but it got away from me. I think this is a real good setup.
ReplyDeleteWow, your DUG trade was unbelievably well-timed!
ReplyDeleteGreat blog and congrats on a well-timed trade. The volume on DUG over the last several days is astronomical.
ReplyDelete