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EnvestorFirst (< 20)

Bears At Play



July 29, 2009 – Comments (0) | RELATED TICKERS: DUG , FAZ

Looking at $DUG and $FAZ, we continue to stick by our conviction that taking a bear position on the Dow and Oil right now makes a bunch of sense. As we look at the Dow it seems the momentum is starting to slow and a turnaround is coming as that basket of stocks adjusts after a period of exhuberance. We go into this a bit more in yesterdays post. Weighting advances at 3x where the market is FAZ gives you more of what you buy bear ETFs for. Oil is also slowing quite a bit as reflected in the chart for West Texas Light Sweet Crude. With the momentum slowing and temporary price drivers like a national holiday more than a month away we can see where a bear play on crude is the way to go. DUG is a pretty good way to take advantage of this eventuality and we intend to.

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