Dug is up 20% in over a week
Many of you might have read my previous article where I question whether the oil bubble was ready to burst.
Previously: Is The Oil Bubble Ready To Burst?
Since July 7, 2008 until July 16, 2008, (DUG) has gained well over 20%. This is certainly not a burst of bubble but it is interesting to see whether it'll sustain for a longer term.
If you invested on (DUG) or have any comments please feel free to comment.
Is The Oil Bubble Ready To Burst?
Bubbles Always Have a Limit where they can no longer grow and sustain the hype.
I have seen oil run up like many of you have but without owning a car it hasn't hurt my wallet yet.
I've been thinking of investing in an oil shorting stock (Exchange traded Fund in this case.)
Symbol: (DUG) which bets that oil will go down. The ETF that bets for oil is (DIG) and the top 10 holdings are listed below. DUG basically almost shorts all those companies and more.
Source: ProShares
Here is my usual chart showing the trend reversal the past few days.
It broke through the 50 day moving average and might make a modest run.
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An interesting chart showing that the oil price has touched base with the total oil consumption just like the 1980's bubble.
Source: SmartEconomy
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Disclaimer: I have not invested into DUG yet but it is getting very interesting.