Check Yo Self Friday, Oil Stocks

Yet another 300 point loss on a Friday, TGIF indeed.  But at least gas is getting cheaper and with that the stocks that make up those wonderful oil companies.  Alas, time to check yo self.

Crude-oil futures tumbled Friday to close at their lowest level in 17 months, down 11% for the week, as a production cut by some of the world's key oil producers failed to ease concerns over a slowdown in oil demand.

"The market isn't interested in supply issues with world demand the question," said Darin Newsom, a senior analyst at DTN.

The Organization of the Petroleum Exporting Countries will slash its oil production quota of 28.8 million barrels per day by 1.5 million barrels, beginning November 1, as the world's financial crisis dampened demand for energy, the cartel said Friday at a meeting in Vienna.

Crude for December delivery closed at $64.15 per barrel on the New York Mercantile Exchange, down $3.69, or 5.4% for the session to lose 11.1% for the week. That was the lowest closing price for a front-month futures contract since May 31, 2007.

How to play this?  The DIG and DUG.  We called this way back in the summer, oil was going down big time and it has.  For now, join the momentum and buy DUG and when oil is at its lowest, get on the waggon and pick up the DIG.  It's really that simple, again, let's review those ETF's, after a quick message from ICE CUBE:

Ultra Oil & Gas ProShares  (Public, AMEX:DIG) - Short this guy.  This ETF profits when the big oil companies stock does well.  Its largest 10 largest holdings are:

Masters, these companies have had their run, a tremendous one at that and the party is coming to a slow down.  Not an end, but a slow down, and that's enough to be Short this ETF.

UltraShort Oil & Gas ProShares  (Public, AMEX:DUG) - Long this puppy. ProShares seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones U.S. Oil & Gas Index^SM.  What are the companies in that Index?  A ton, but the biggest holdings are: