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OIL heading higher to $200 or SPIKED BLOW OUT TOP in place ???

Author: Harry V (info)
Website: http://myoptiontrades.com
Posted: June 8th, 2008 at 12:29 pm EST
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Oil spiked up nearly 16 dollars in 2 days and all hell breaks lose in Indicies which head lower big time and all day long FRIDAY.

What now for OIL ?? Is the main market BEAR roaring again, headed lower to last supports or newer lows?? Only time will tell.

However, something very interesting happened FRIDAY in markets that sure needs everyones focus or attention atleast.

DUG … PROSHARE ULTRA SHORT OIL AND GAS is an ETF that moves ULTRA (twice) as fast in reverse direction to the moves in OIL and GAS sector. As we would normally expect, DUG should have moved down with 16 Dollar spike in OIL prices. Infact it should have spiked down to new low.

Guess what … DUG has moved up quietly all day long while everyone was worried and focused on OIL spike and watching INDICIES drop.

So the big question is what does this divergence or coincidence mean to us all?? Well, it seems Some Smart Money has been spiking OIL to new BLOW out top while buying the ULTRA SHORT OIL AND GAS. 

Time to watch this divergence and make smart moves in Oil and overall markets.

Happy trading.

Harry 

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