Tuesday, February 24, 2009
What do you mean, bullish?!
I'm looking at DIG, the double bullish ETF on oil and gas stocks, and thinking about what comes next once this panic wash-out blows over. At $20/share for this ETF, I think an easy 50-100% gain can be made within a few months on the bear market rebound. Oil went from darling to red-headed step child in the blink of an eye, but every collapse is followed by a decent dead-cat bounce and the one in DIG, given its double leverage, should be fantastic.
Since I believe we may be in the final week of yet another intermediate bear market leg plunge (roughly 21% so far over the last 7 weeks), it's time to start planning for what comes next. I think DIG is as good an ETF sector play as any for a wicked bounce higher as a short term trade to be held for 2-8 weeks. Don't be in a rush to buy too soon, as this thing could hit $15 if the final plunge turns ugly. However, at under $20/share, I think DIG is a lock for a relatively quick, very profitable trade.