Sunday, March 16, 2008

Short OIL ( USO) - long DUG???

Last few days I was really confused by divergences between USO and DUG - both were going up on substantial volume ( to be precise - DUG was just staying flat in spite of USO creeping higher ). I think that "unreliable broadening formation" might really let go, at least short term. I might start building longer term (DUG) position by the end of next week.

To refresh recent thoughts on oil -
Below is a repost of 3/6/08 take on OIL
Morning thoughts on Oil A.K.A. USO for equities traders
posted 03/06/08 08:55 AM | Viewed 32 times

USO is breaking out...out of highly unreliable broadening formation, notoriously famous for producing really short lived moves in the direction of breakout and high failure rates. I will be starting to build DUG position right from open today - especially if Crude Oil will open higher or move higher in the first hour.


( Thursday's morning 8:55 long DUG call have produced about 10% in 2 days )