bidding on DUG & SRS, sold SRS -6%

We remain skeptical that the U.S. dollar will continue to drop and that markets will continue to rise. Oil is nearing a "make or break" point with some credible analysts predicting a price below $40 by year's end, while others say the price will rocket higher. We doubt there's any demand either real or speculative for much higher oil prices, but whatever the move it could start as early as this morning when the inventory figures are announced.

Obviously given the above paragraph we're bearish oil, however we do not wish to commit ourselves financially to that position unless the market is moving in our direction. Thus we bid to purchse DUG, the ProShares UltraShort Oil & gas ETF if it trades as high as $14.05 intraday.

Should we then become owners of DUG, we'll set our protective stop at $13.70 thus limiting our potential risk to only 2.5%

These orders will remain open until further notice.


We were recently stopped out of our position in SRS, the ProShares Real Estate UltraShort ETF. Shortly after purchase in early August we had a paper profit of over 20% and sadly this became a real loss of roughly 6%. Such is the game we play, and since we are hoping to catch a major turn we will not satisfy with even gains of 20% for the time being.

Fortunately per the previous blog entry we had raised our stop, so the loss on SRS was minimal as we traded responsibly.

We shall repurchase SRS if it reaches a price of $9.60 intraday and will keep this order open until further notice.

Should we become owners of SRS per this bidding, we'll set our protective stop at $8.45 thus limiting our risk to 12%



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