Obama offers steps to curb oil speculation (DIG DUG)

Barack Obama has offered new steps to crack down on speculation in oil markets, saying his plan would help rein in runaway fuel costs. Let's review the details of Obama's plan, which will benefit investors by Shorting DIG and going Long DUG:

* The Illinois senator's campaign said he would close the so-called Enron loophole that exempts some energy speculators from U.S. regulations that apply to commodities traded over exchanges. It takes its name from the energy giant that benefited from the law and later collapsed because of massive accounting fraud.

* His plan would require U.S. energy futures to trade on regulated exchanges.

* Obama is calling for more data on index funds and other similar types of investments to boost transparency of institutional players in commodities markets.

* He backs legislation that would direct the Commodity Futures Trading Commission to investigate proposals such as increasing margin requirements in the market.

* He would aim to stop energy traders from evading U.S. regulations by conducting transactions through foreign subsidiaries of U.S. exchanges.

* He would call on the Federal Trade Commission to expedite investigations of suspected price manipulation and direct the Justice Department to look at whether illegal activity has contributed to the run-up in oil prices.

There's only one way to play this game, Short DIG and Long DUG. 

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: