ProShares UltraShort Oil & Gas, SPDR Trust: Money Flow Leaders (DUG, SPY)

Remember all those times OPEC tried to tell us that they didn't want high oil prices and we didn't believe them?  Well, they meant it.  They knew that technology was available to crush oil demand but they hoped that the low price of oil would keep the technology buried.  The cat's now out of the bag.  The commodity run is over.  The talking heads are trying to temper the recent selloff in oil by saying that it will settle around $100 a barrel but that is not what happens when a bubble bursts.  Oil is headed back down to historical levels between $30-$50 a barrel.  Consider the following evi

Bad market times are great times for stocks which bet against various indexes in the stock market, I have compiled a list of the stocks that do well when the index does not.
If you have the ability to do a lay over chart you can see that the stocks listed below each index, they rely on that index doing badly, who says you cant make money in a bad market. <o:p> </o:p>

These stocks will produce as long as the bear market holds, my best guess is til about september. <o:p> </o:p>

There is an increasing number of discussions and recommendations about being short or long oil.  A number of innovative ETF vehicles have been springing up to provide ways of playing oil long or short, even leveraged in either direction.  At the same time the usual suspects are out there encouraging individuals to try their hand in the futures market.

To be up-front, we are long (DUG) which is a leveraged short on a number of oil and gas related stocks. A fair number of people have come out and questioned this as an "investment." In the short-term, of course it is not. Nobody can be right i

Last Friday’s pick, The New Ireland Fund (IRL), is up 6.5% in less than one week.

Here's my ETF pick for this week:Pro Shares UltraShort Oil & Gas ETF (DUG)

Over the last ten years the S&P 500 has returned a meager 2.88%. Why? Because in the long run the market doesn’t like bubbles. We’re now in the third wave of bubble euphoria and we’re hearing the same underlying message that we heard during the first two, just in different terms. During the dot-com era we watched tech fly to P/E multiples of 200 and above. When fund mangers were questioned about investing in such companies back in 1999, they collectively responded by saying times had changed. Lofty valuations became the new norm-until they crashed that is. The Nasdaq (QQQQ) still isn’t even

For the past several weeks, we have been adding to our position of UltraShort Oil & Gas ProShares (DUG) as we believe that the underling fundamentals for the Oil Sector are faltering. The fact that the price for oil is rising and DUG is rising continues to show that the thesis is solid. Here are some interesting points from economy.com:

Peak Oil, or Oil at a Peak?

by Mike Burnick

Recently, many investors have begun to speculate that the bull run in crude oil prices has reached bubble-like proportions. Some folks are saying that "speculators" have driven the price of crude to unsustainable levels and a painful correction is just around the corner.

The ETF that tracks the US Energy Sector (AMEX:IYE) is starting to show signs that it may be ready for a real fall. As there has been a significant increase in the noise surrounding sky-high oil prices and regulators and politicians looking to increase oversight, they will surely end up trolling for a scapegoat.

(CLICK CHART FOR LARGER VERSION)

Will that cause some of the recent froth to be lifted from the energy stocks? Maybe. Take a look at the index and think about the timing potential for ETFs that short similar indicators/indicies such as the UltraShort Oil & Gas ProShares (AMEX:DUG) whi

Bad market earn profits <o:p> </o:p>

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SHORT OR ULTRA SHORT INVERSE Business:   The Fund seeks daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of the   Index. exchange-traded fund incorporated in the USA <o:p> </o:p>

Bad market times are great times for stocks which bet against varies indexes in the stock market, I have compiled a list of the stocks that do well when the index does not.
If you have the ability to do a lay over chart you can see tha

• U.S. crude futures tumbled sharply after news that China will raise gasoline and diesel prices.
• China will boost retail gasoline and diesel prices by 1,000 yuan ($145.5) per tonne from Friday, the first increase in eight months, industry sources told Reuters.