crimfunk

Oil ETFs: What if the Dollar Strengthens?

DUG is not a good proxy to short oil. DUG shorts $DJUSEN x2 which is made up of E&Ps, OIH companies the drillers, Refiners, and NG Plays. For DUG to trade well all four must come down at the same time. While crude may drop the E&Ps, refiners have bottomed and are rising with the crack spreads, NG demand hasn't stopped, and driller will perform with continued demand.