Leveraged Oil & Gas ETF (DIG) Could Be Poised For Breakout...Or Breakdown

With the return of volatility to the oil market (did it ever really go away?) and the Street once again scrutinizing weekly rig counts (did it ever stop doing this?), the ETF Professor thinks it might be a good idea to keep an eye on the Ultra Oil & Gas ProShares ETF (NYSE: DIG). Yes, DIG is one of those infamous leveraged ETFs. It is designed to replicate twice the daily performance of the Dow Jones Oil & Gas Index. The Professor cautions that ETFs like DIG are short-term plays and that you should NOT buy an ETF like this and think you can hold it for months on end. That said, with National Oilwell Varco (NYSE: NOV) reporting earnings on Monday, DIG should certainly be in play. It has made a series of higher highs and appears to be consolidating in the $36-$38 area. No predictions from the Professor on direction, but there are profits to be had for the astute investor.