9367PowerShares DB Commodity Double Short ETN (NASDAQ: DEE) — This exchange-traded note (ETN) 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 May 21, I said, “I have recommended DEE several times, and most recently on April 29, at under $50 with a target of $60. That target has been met and, although it could go higher, a stop under $59 could protect against a reversal and the loss of your profit.”

DEE did pull back to $55, but then reversed, creating one of the strongest buy signals — the gold cross.

Even though the stochastic is somewhat overbought, the golden cross is a strong signal, so I’m raising the target to $70.

But be careful, because this is a very volatile, speculative ETN that is designed for the day trader. If you buy it, be aware of the risk and use a stop-loss order to protect against unlimited loss. This ETN is not recommended as a long-term investment.

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.

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