Thursday, 25 October 2007

Portfolio Update: Dumped Energy Short

Just updated my portfolio page (see Navigation bar) to reflect my sale of the 200-percent leveraged DUG UltraShort Oil & Gas ProShares ETF just before the close yesterday. DUG has recovered somewhat in recent days, helping to offset losses in my long equity holdings as the market digests its new subprime woes, but I needed to raise some cash for another project. Technically, energy stocks look weak, as this chart of OIH vs. USO shows. But as Stephen Vita often points out at his great AlchemyOfTrading.com blog, citing Paul Tudor Jones: "Losers average losers." So DUG was the one to go.

2 comments:

Anonymous said...

Actually, this would not be a bad time to buy this short on energy as the oil price got out of hand, IMHO. I consider that or shorting USO. Natural gas is reasonable though.
I got out of most of commodities and waiting to things to cool some.

About Alex Roslin said...

Thanks for your comment. You may be right, but markets can be overbought or oversold for long periods without reversing.

Regards,
Alex