A week ago today, Crude oil was facing stiff resistance and the suggestion for those that are comfortable with scoring on defense was to do so, via inverse crude oil/oil stocks etf’s. (see post here) What a difference a week makes, as Crude Oil is down almost 10% in 5 business days. See update below.
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Did a post on DTO, inverse crude oil ETF (see post here). Many commodities (grains, metals and softs) did very well yesterday, yet Crude Oil didn’t have near the bounce, which could represent “relative weakness.”
Lower channel support is still a good percentage below current prices. Keep stops in place in case of some upside surprise in prices!
Andy…keep in mind this. DUG is 2x “oil stocks” and DTO is 2x “Crude oil” Not the same.
Take today, 11/23, DUG is doing much better than DTO, due to the weakness in the stock market.
Thanks for the great question,
Chris
Just filtering through 1,000 pieces of spam!
Blog dead? what happened to all the good comments ’round here? Guess i’ll revert to my other favorite blog.
What gives? Oil down 10%. If you bought DUG on 11/12 it was trading at 44, today with oil down 10% DUG is trading at 45??? And this is supposed to be 2x the action aka 20%???