selling DUG +5%

We book a modest 5% profit on DUG, the Oil & Gas Ultrashort ETF.

The situation currently economically generally and in the Middle East specifically is too volatile to feel comfortable holding such a position and risking that this gain turn to a loss.

It was risky enough when we took the position two months ago, then the stock went further against us than we were comfortable with. We're lucky now to realize a profit on the trade so we step aside.


With this trade today, thus far in 2008 we've closed 22 positions, all winners both long and short, for an average 30% gain on an average holding period of just over 6.5 months which implies an annualized gain of 55%


Should equities continue to fall, DUG will go higher, but with the general consensus being so pessimistic we're looking for a rally in the near term. However should markets move materially lower, we'll then put these proceeds to work via purchases of apparent bargains.


We note that along with the chaos in energy prices comes a renewed interest in wind power. Observe the day's news With this in mind we remind readers of our "dark horse" wind power speculation KWPW, in which we hold existing long positions.



We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the stocks we do, or mentioning them in this blog. If we hold existing positions we divulge the fact, otherwise we generally buy and sell as diarized here. This blog itself is merely a diarizing of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult your broker or investment advisor before making any investing decisions.

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