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!

Pick: Ultra Proshares Oil and Gas ETF (DIG)

[For a free subscription to Phil’s Stock World, click here - it’s easy, no credit card required]

Pick: Ultra Proshares Oil and Gas ETF (DIG)

Courtesy of David at the Oxen Group 

DIG - Oxen TradeThe Oxen Group, for Thursday, is optimistic to hope for a good day from the market. Too many red days even in a bearish trend, means a correction every few days. Tomorrow, futures are already up as investors may be getting excited about jobless claims, which have been bullish for the past few weeks. Additionally, Research in Motion will be releasing earnings that are expected to be very positive for the tech sector and TARP paybacks were successful.

The market is due for a fundamental correction, as there are some bargains presenting themselves again. One of these is oil, oil service companies, and oil ETFs. After oil prices have slipped, with a late small gain today, oil may be ready for a move on Thursday. Gasoline wholesale prices have continued to slip, which is signalling a pullback in gas prices. Further, oil may get a boost from a very bullish Chinese inventory announcement that shows the Chinese economy is pumping again, helping to increase oil prices in the Asian market. We like Ultra Proshares Oil &Gas (DIG) to rally, with major holdings in Exxon and Chevron, which have both been hit with losses for the past four days. DIG has lost 13% in the past four days and moved down too quickly, presenting an opportunity for money to pour into the stock. If jobless claims are bullish and gas prices rescind, investors will push this stock up as inventories really did not get a chance to increase the oil market, which was a bullish indicator. Oil looks ready to rise, therefore, BUY DIG!

Entry: Recommend buying within first 10-25 minutes.
Exit: We recommend exiting after a 2-4% increase.
Upper Resistance: 30.50

David’s Oxen Trade Results:

Date   Stock Entry Exit %Change
5/29/2009   GPS 16.99 17.67 4.00%
5/30/2009   TM 80.77 81.72 1.18%
6/2/2009   SRS 18.06 18.6 3.00%
6/3/2009   DUG 16.68 17.35 4.00%
6/4/2009   TLAB – SS 5.95 5.84 2.00%
6/5/2009   XOP 35.84 35.85 0.00%
6/8/2009   BLK 164.76 168.87 2.50%
6/9/2009   USD 20.3 21.12 4.00%
6/10/2009   SINA 30.17 31.07 3.00%
6/11/2009   SRS 18.39 19.3 5.00%
6/12/2009   NSM 13.23 13.56 2.50%
6/15/2009   ERY 18.32 19.05 4.00%
6/16/2009   SKF 41.21 42.85 4.00%
6/17/2009   SRS 20.17 20.97                           

 


Tags: , ,

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!