John Pitera's Market Laboratory Message Board

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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Hawkmoon who wrote (9610)	7/7/2008 2:48:04 PM
From: The Ox	Read Replies (1) of 33421

Keep in mind that the DUG ETF is based on the stock prices of Oil Companies. It is not directly tied to the price of oil. Oil prices could deviate from DUG's trend if the market believes that the stocks (which make up DUG) are ahead of themselves or due to fall for other reasons. Likewise, Oil prices could back off and DUG could continue to fall if the market stays bullish on the oil stocks. I would not use DUG to short crude. It should be used to short oil stocks, not oil itself, imo.

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