PowerShares DB Commodity Double Short ETN (DEE) — This fund seeks to replicate, net of expenses, twice the inverse of the Deutsche Bank Liquid Commodity Total Return Index, which is based on crude oil, heating oil, corn, wheat, gold and aluminum.
On Friday, April 16, many futures contracts, as well as stocks, indicated that a reversal down had been executed. On Monday, April 19, I said, “If these short-term signals are correct, then DEE could give the trader a quick 10- to 12-point-plus profit if purchased under $50.”
Yesterday’s reversal down for many commodities confirmed the April 19 signal, and yesterday’s close above its 50-day moving average triggered another buy signal for the ETN.
You may not be able to buy DEE below $50, but the chance of a quick run to $60 is still possible.
Be careful, though, because this is a very volatile, speculative ETN that is designed for day traders. It is not recommended as a long-term investment.
Be mindful of the risk and use a stop-loss order to protect against unlimited losses.
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