Sold -34 DUG @23.44 and Bought +10 SKF @104.125

DUG broke my $25 stop yesterday. I gave it some room because of the recent $6 / share distribution on Dec 22. So that effectively shifted the chart by 6 points. However, the Crude Oil broke above it’s 20-day MA and is showing signs of strength, Figure 2. So I decided to get out of DUG as my short hedge and move into SKF.

My DUG shares were bought for $30. Distribution was $6.06. So my net lost per share on this trade is [($23.44 + $6.06) - $30] = -$0.5. Which is a total loss of $0.5 * 34 = $17 + $10 commission. It’s basically a breakeven trade.

UltraShort Oil & Gas

US Oil ETF

As I was saying, I replaced DUG with SKF as my short hedge. We are testing the Oct support on SKF. Furthermore, despite the S&P breaking above the down channel this week and along with SKF’s distribution, SKF is still above the psychological 100 level.

UltraShort Financials

Stop: $96, the October support.

Target: $120, a congestion zone.

Bottom line: This is merely a short hedge play so I actualy don’t hope for big gains on this.

Related posts:

1. BOUGHT +100 FAZ @14.29/SOLD -100 FAZ @13.88
2. BOUGHT +34 DUG @30.00
3. Sold 350 VEN.TO @ 10.50 (Profit +0.8%), Re-Bought 250 VEN.TO @ 10.67
4. Bought/Sold 250 TCK.B.TO @ $34.10/$33.68, Loss -1.2%
5. BOUGHT +7 SKF @128.83