by Sam Collins 10/03/08
UltraShort Oil & Gas ProShares (DUG) -- This Exchange-Traded Fund (ETF) seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones U.S. Oil & Gas Index.
More Trader Alerts
When a huge bull-market spike in July drove crude oil and other energy commodities to new highs, this ETF fell to new lows but within six weeks established a quadruple-bottom with four Collins Bollinger Reversal (CBR) buy signals.
Since then, oil has fallen and DUG has risen, flashing one positive signal after another: Note the 'gold cross' (a 50-day moving average over a 200-day moving average) in September, a stochastic buy last week, along with one of our own CBR buys.
This chart has a near-term price object of $55 with much higher prices likely.
Get Sam Collins' Daily Trader's Alert e-mailed straight to your inbox each morning before the opening bell absolutely FREE!
In addition to getting instant access to his Trade of the Day, you'll also receive, in the same e-mail, his Daily Market Outlook so you can start your day off right by positioning yourself for profits!
Click here today to sign up today for Sam's FREE Daily Trader's Alert!
Sam Collins can be reached directly at samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.
FAST is now consolidating and recently flashed a buy signal from our internal indicator.
Options Expiration Adds Volatility
The opening looks to be higher but today is options expiration day, and anything could happen.
Chances are high stocks will sell off further, but be alert for a dead-cat bounce after such a dramatic breakdown.
Traders and longer-term investors should sell any new positions at the first opportunity and short ETFs on a temporary recovery in the market.
CAT, the blue-chip of its industry, is the first to attract attention when it's time to dress up a portfolio.
