UltraShort Oil & Gas $DUG Testing $20 Resistance

The UltraShort Oil and Gas ETF $DUG is testing ceiling and downtrend resistance at $20. A break above $20 could bring some upside momentum. We'll see if this oil correction is for real and if it breaks below the 50 day moving average. Crude could then test $57.50-60 support/200dma, imo.

If the US Dollar breaks down, equities catch a bid, middle east tensions arise or a hurricane hits, this oil correction would be short lived. Protect yourself...

UltraShort Oil & Gas $DUG (Courtesy of Stockcharts.com)

UltraShort Oil & Gas Weekly DUG (Courtesy of Stockcharts.com)

Crude Oil ($WTIC - Stockcharts.com)


Oil Volatility



Oil Price Looks High as Demand Slumps: IHS Global Insight
Oil News Links:

ALERT - August USO, XLE Put Options Active (DistressedVolatility)
Iran Is Poised to Increase Price of Light Crude Oil (Bloomberg)
Oil Looks Pricey, but Beware the Bearish Bet (WSJ)
Volatility Swings in Oil Prices Hobble Industry atching Re-Runs on the Oil Market (NYT)
Baker Hughes: US Oil, Gas Rig Count Up 11 To 928 This Week (CNN Money)
Oil Prices Headed Lower? (WSJ Market Beat)
IEA says speculation amplifying oil prices moves (Reuters)
Drill Bits: Rig Count Picks Up Again. Why? (WSJ Blogs)
Saudi Arabia May Cut Heavy-Oil Price as Processing Profits Drop (Bloomberg)
OPEC Says ‘Satisfied’ With Current Crude Oil Price (Bloomberg)
US drilling increases for third straight week (PennEnergy)
Oil Outlook for the Second Half (CNBC Blog)
Weekly Crude Oil Inventory Plummets (Thestreet.com)
Oil Rises After API Industry Report Shows Drop in Crude Inventories (Bloomberg)

*ProShares UltraShort Oil & Gas 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 IndexSM. ($DUG - ProShares)

*No Position