DUG tracks the DJUSEN. The DJUSEN is an index of 97 oil companies and has no direct relationship with the price of oil. The top ten components of DJUSEN and their weight in the index, from the proshares.com website:
Exxon Mobil Corp. 27.94%
Chevron Corp. 11.74%
Schlumberger Ltd. 6.45%
Occidental Petroleum Corp. 4.01%
Devon Energy Corp. 2.65%
Apache Corp. 2.41%
Transocean Inc. 2.40%
Halliburton Co. 1.98%
Marathon Oil Corp. 1.96%
I'm guessing that it's because XOM and CVX are major components of the XLE. I haven't been in DUG for a long time and am just looking it over now. I may buy some today or Monday. I already shorted some energy stocks and I'm not sure I'm ready to enhance those with the DUG before the weekend.
okay I found a post from someone here that explains it
dug trades to the Dow Jones U.S. Oil & Gas index
and I think what he was saying is that it moves more with xom and chevron than the price of oil.
Can some clarify this.
Thanks, DP. I was just about to post and ask you if you were going to hold. I expect the same. Maybe a market sell of on Monday, driving it up to 25. Maybe a couple consecutive down days to get it to 26-27.
I am beginning to believe that too.
the pps is at 22 60 and the crude has moved from up 180 to up 163........
no change..........so what gives.......
maybe someone here can explain how this works...
would appreciate it