There are great wealth-creating opportunities in today’s miserable markets, says Andrew Snyder. Take oil, for example. The black goo is on a slippery slope towards $50 a barrel, and no OPEC production cuts are going to stop this in the short term. Andrew says the UltraShort Oil and Gas ProShares ETF (AMEX:DUG) is the best way to profit from the oil industry’s downturn.

More from Today’s Financial News:

Our good friends at OPEC are up to their same old tricks. Oil prices are dropping so the cartel is meeting later this week to discuss a cut to pumping quotas. It is a last-ditch effort to try to keep crude prices from plummeting all the way to $40.

The cartel is expected to reduce production output by as much as two million barrels per day, which would be considered a major cut. There are even rumors that Russia may reduce its output as well. Remember, there are scores of countries that are now dependent on huge sums of “oil” money to fuel their economy.

If we see prices go much further below today’s levels, we are going to see several countries buckling to their knees. The same nations that gouged us for the past few years are in desperate need of help. I cannot wait to see them shed some tears.

Let ‘em fall

Really, all that OPEC is trying to do this week is change investor sentiment. We all know the organization’s price-fixing scheme has been utterly unsuccessful in the past. Greed, corruption, and a powerful producer force outside of OPEC continue to allow the free market to price a barrel of crude.

But if OPEC can sway investor sentiment, make us think demand is not dropping all that much, and make the world believe oil prices truly deserve to be high, then its mission later this week will be a success.

Fortunately, OPEC does not have the slightest chance of keeping oil prices artificially high. Sure, this week prices may not make the drops we saw over the past few weeks. But the decline will continue. We will see valuations drop all the way down to the $40 range.

I know the world has evolved into a market that demands instant gratification, but oil prices will not plummet $30 overnight. It will take some time. But over the next few months and quarters as we see more examples of a worldwide economic recession, crude demand will slip, supply will increase, and prices will drop.

Last week, I recommended that readers take a short position on oil. That way, as prices fall they can profit. The best way to take advantage of the fall is through an exchange-traded fund (ETF) like the UltraShort Oil and Gas ProShares (AMEX:DUG).

The fund is designed to move inversely to crude prices at a 2-to-1 ratio. In other words, for every percentage point crude prices fall, this ETF will increase in value by two percent. It is a great way to take advantage of the oil industry’s downturn.

Another great aspect of ETFs like this one is the ability to buy and sell options based on it. For savvy options investors, there are all sorts of profit and hedging opportunities.

If you are a Hot Stock Confidential subscriber, do not be surprised if you hear about one of these highly profitable plays in the next two days. Last week, we made 85% gains in just a day on Altria (NYSE:MO). We might just reap some more gains from the oil industry.

Oil prices are going even lower. Take advantage of the situation and put some profits back in your portfolio.

These are some highly volatile times for the energy industry and the market as a whole. Pay attention to what is going on, and you have a shot at some great, wealth-creating investments.

Source: OPEC cuts create fantastic buying opportunity