"There is a very interesting situation developing in the oil and gas industry," says Mike Turner. In the Trade of the Week, he looks at the Oil & Gas Ultra ProShares (NYSE: DIG).

"Even though global economies are not rapidly recovering (although they do seem to be on a positive upslope), and even though there seems to be a bit more supply than demand in the energy markets, oil and gas stocks continue to move higher. What's behind this move?

"Oil has become the inverse proxy to the U.S. dollar. As the dollar weakens, the price of oil is moving higher. With the burgeoning debt piling up in the U.S., the dollar looks to be under pressure to move lower for the foreseeable future. 

This bodes well for the price of oil to move higher, which is good for stocks in the entire oil and gas industry. Looking at the futures market, it appears this trend will continue for several more months.

" And if energy commodities are moving higher in the current economy, I see little on the horizon that would do anything but put more upward pricing pressure on the industry. In short, the oil and gas market is looking very bullish.

"Add the fact that my system is flashing a 'Buy' signal on the Oil & Gas Ultra ProShares (NYSE: DIG), and it makes perfect sense to make this fund my 'trade of the week.

"This ETF has been gaining ground ever since it gave a 'Buy' signal a little over 3 months ago. It is now trading well above my 10-week, time-shifted trendline, as well as the 200-day moving average.

"DIG appears to have plenty of upside room before encountering any technical resistance. While I plan on setting my exit target at $50, the shares would have to reach the $70 level before hitting the closest resistance level.

"The fund's industry (oil and gas) and the global focus (United States) are both showing strong bullish trends, where the average price of all equities in both these groups is moving solidly higher. This should lead to a 'rising tide lifting all boats' phenomenon, which is very strong for this ETF."