Oil Skyrocketing Today (DIG)

West Texas Intermediate crude is skyrocketing this morning, gaining more than $2 per barrel to trade at $76.27. WTI is starting to catch up to Brent North Sea (BNS) crude, which is just over $77 per barrel. As I wrote last month, WTI always catches up to BNS, and it was just a matter of time when it would happen, not if. To take advantage of this ramp in WTI today, traders may want to look at ProShares Ultra Oil & Gas ETF DIG. This is a leveraged ETF which tracks the performance of the Dow Jones U.S. Oil & Gas index. It seeks to capture double the return. As the price of WTI oil continues to jump and catch up to BNS oil, DIG should outperform over the short term. The company uses swaps and other derivatives to capture this move in the index. It also holds shares of companies such as Exxon Mobil XOM, Chevron CVX, and Schlumberger SLB. Disclosure: no position in any stocks or ETF's mentioned