Sorry, BP's Cap "pass" or "fail" has nothing to do with DIG price going up or down. The truth of DIG face being so ugly these days is because the super-rich looking at the housing market being K.O feel the deflationary days are here with us, so they dump DIG and run after DUG. By the end of this Summer when the FED's money-printing machine is shifted to overdrive again (why not! As the election days are nearer,Big Brother needs to see more smiling faces among the voters). With the flood of new money, inflation will shout"Here I'm again!" and DIG will start its fireworks, trust me. In short, if you feel deflation is here, better befriend DUG . At the sight of inflation being back, kick DUG to kiss DIG .
It will affect the DJUSEN and impact the PPS of all major oil companies. Sentiment will flow back into oils. It's the way of the herd. But remember, this is a trading vehicle. So I'm in it for a day, tomorrow.
When I bought DIG a 10 days ago, I set my target price at $31. Now, I'd happily take 29.50. Getting a little impatient with it. BP cap looks less promising, but the falling dollar today is lifting oil. If the big banks deliver later this week we could see 29.50 as the whole market rises.