Best ETF or ETN that has inverse relationship to price of Crude Oil?

M

monty21

I hold the minority belief that crude oil will reverse and fall steeply. I obviously can't exactly time this, but at the moment that I feel that oil has lost its edge based on some news or another factor, I believe all the bulls will take their profits and run. IMO oil has risen based on speculation. I don't think the fundamentals (demand, Fed's devalueing of the dollar) explain crude oils rise from the mid $40s in 2002 to $126 (today) six years later.

I think it would be rather dumb to short crude oil ETFs in this bull market, however, particurarly because of the president's of OPEC and Sach's announcement that it may reach $200 dollars a barrel. I also don't feel comfortable shorting individual companies like Exxon Mobil.

What are the best ETFs/ETNs that have an inverse relationship to the price of crude oil? I think the more conservative approach would be to buy these instead of shorting crude oil. I am not interested in specific companies, however, nor am I a fan of natural gas.

I greatly appreciate any suggestions.
 
Quote from Mvic:

What about DIG and DUG.
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DUG is close but not exact since it trades opposite of ^DJUSEN. DUG is tied to oil companies, best way to take advantage of this is to short USO, I would but there seems to be no shares available. Again DCR is a way but you really have to understand how it trades before buying, they are coming out with a new one at the end of JUNE based off of $100 oil which will begin trading around $25 a share, those will probably be popular since many are looking for some way close to short oil.
 
Quote from S2007S:

DUG is close but not exact since it trades opposite of ^DJUSEN. DUG is tied to oil companies, best way to take advantage of this is to short USO, I would but there seems to be no shares available. Again DCR is a way but you really have to understand how it trades before buying, they are coming out with a new one at the end of JUNE based off of $100 oil which will begin trading around $25 a share, those will probably be popular since many are looking for some way close to short oil.
More...

I've been following DUG for a few weeks now and it looks like a good stock to trade intra day if that is your style.

There are always options on USO.

Something else I have noticed is that the EMs usually start topping out before oil does and can give a decent oil short signal and perhaps more importantly can keep you out of an oil short.

A good site about oil fundies
http://www.wtrg.com/prices.htm
 
Quote from Mvic:

I've been following DUG for a few weeks now and it looks like a good stock to trade intra day if that is your style.

There are always options on USO.

Something else I have noticed is that the EMs usually start topping out before oil does and can give a decent oil short signal and perhaps more importantly can keep you out of an oil short.

A good site about oil fundies
http://www.wtrg.com/prices.htm
More...
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2 possibly dumb questions:

USO is which exchange??
what are EMS??

Thanks for your help.

Ch.
 
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