Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Oxen Group’s Pick of the Day: DUG

Click here to sign up for a free subscription to the PSW Report.  It’s easy!  – Ilene 

Oxen Group’s Pick of the Day: DUG

Courtesy of David Ristau at The Oxen Group
 
The Oxen Group, for Wednesday, is bullish about the prospects for Ultrashort Proshares Energy ETF (DUG). The ETF looks poised for a runup, tomorrow, amisdt what could be a pullback for oil prices tomorrow. The only major event scheduled for tomorrow is a Bernanke speech, but can he really say anything we don’t already know? In Asia, oil prices fell in the market as analysts and investors took profits. Tony Nunan of Mitsubishi Corp. said that prices went up too fast, too quick. More so, they went up on very little fundamental news. Oil inventories may come as a shocker this week as drivers made a return to normal habits coming out of the Memorial Day Weekend. However, the most compelling argument for why oil will see a down day is the pattern we are seeing with investors over the last four bullish days. It started on a high note and has trailed off to today. Tomorrow, with little to no news to really drive up the market, attention should be affixed to taking profits made over the past four days, including oil. Further, oil is bucking technical markings, as well. DUG has dropped 25% over the past two weeks as energy companies have prospered from higher oil prices. That movement is just way too quick. DUG is now outside of its lower bollinger band, showing the extreme increase in oil prices. The ETF is way oversold on stochastics, as well. Tomorrow seems like a perfect retracement day, and as oil prices fall, DUG will shoot up!
 
Entry: Recommend buying within first 10-25 minutes after slight pullback.
Exit: We recommend exiting after a 2-4% increase.
Upper Resistance: 18.25

Note:  Oxen Group trades are day-trades, so if the exit price is not reached by the end of the day, sell before the close.

 


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!