Blog Post

Bubbles Always Have a Limit where they can no longer grow and sustain the hype.

I have seen oil run up like many of you have but without owning a car it hasn’t hurt my wallet yet.

I’ve been thinking of investing in an oil shorting stock (Exchange traded Fund in this case.)

Symbol: (DUG)   which bets that oil will go down. The ETF that bets for oil is (DIG) and the top 10 holdings are listed below.  DUG basically almost shorts all those companies and more.

Top 10 Holdings For Dig

Security Description                    Weight

EXXON MOBIL CORP COM STK     25.21%
CHEVRON CORP COM STK          10.87%
CONOCOPHILLIPS COM STK        6.96%
SCHLUMBERGER COM                6.45%
OCCIDENTAL PETROLEUM CORP 3.81%
DEVON ENERGY CORP(NEW)       2.62%
TRANSOCEAN INC. (NEW) COM  2.40%
HALLIBURTON CO COM STK       2.36%
APACHE CORP COM STK            2.35%
MARATHON OIL CORP COM STK 1.9%

Source: ProShares

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Here is my usual chart showing the trend reversal the past few days.

It broke through the 50 day moving average and might make a modest run.

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An interesting chart showing that the oil price has touched base with the total oil consumption just like the 1980’s bubble........

.....Click here to view the last cool chart