What do you know? The ProShares UltraShort Oil & Gas ETF (DUG) is going up, but the major equity market ETFs, like QQQQ, SPY, DIA, are barely going down. In other words, it is just the energy sector (XLE) and other commodity sectors, that are getting clobbered while the main equity sectors behave very well after a 4% advance. This is what I was thinking on Monday when I managed to buy the high of the DUG. That the energy and commodity trades -- the crowed ones like gold and oil -- were about kaput on the upside, which should in theory reverse, sending the DUG above 42.20 into the 45.00-46.00 target zone. Well, yesterday's huge rally also included energy, which took my "short" position in the oil and gas sector to the cleaners. Today, I am getting some relief, but should I expect the DUG to climb all the way back to 42.00? Well, I expect 41.20/60 to the next upside target in the DUG, but I doubt it will hurdle 42.00 unless the major equity market ETF's begin to really give back a significant portion of yesterday's advance, which I do not expect. I will continue to monitor the DUG closely in the upcoming hours.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.