(click above for larger image)Only one ETF worth noting...DUG, the Ultrashort Oil & Gas ETF which is up over 5% on the drop in oil today.
DUG is down 46% from its high in March...so thats a lot of upside! I believe that oil at $90+ is not sustainable, especially if a recession hits...which is looking more and more likely. Oil is down today (USO -2.3%)...so DUG is going up double that. Volume is approaching 1M. Spread is about $0.o4 so not too bad. Time to get positioned short Oil? Exxon reports earnings on Thursday (negative report expected), Chevron on Friday. BP, Europe's largest oil company reported a 29% decline in profits last week. Some oil services stocks also report this week.
Could an oil and gas sell-off be in the making finally?
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