Today’s new low — and upside reversal — in the ProShares UltraShort Oil & Gas ETF (NYSE: DUG) has the right pattern “look” and the necessary acute oversold conditions reflective of a seriously overbought oil and gas equity sector in the S&P 500 — and one that is overdue for a meaningful bout of profit-taking.
We are bullish on DUG, taking a contrary near-term view of the commodity sector, in general, and the oil and gas sector, in particular, during the days immediately ahead.
