Most of the time it is just better to be lucky than smart. Although I exited my long ProShares UltraShort Oil & Gas ETF (DUG) position prior to the completion of the upleg into yesterday's recovery rally high at 30.47, my concern was that a rally in the QQQQ could drag the energy names higher, thereby hurting the DUG. This morning's down gap and plunge of 4.25% certainly has inflicted pain on the DUG, which now appears to be me to have ended an initial upleg from 26.43 to 30.47, and is in the midst of a correction that points to 28.00-27.70 initially.



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.