I almost took the bait and posted my current positions and gains on SGY, CVX and many more. I posted on Snippet some gains off a very good Glencore trade(A Double!) plus my Clean Coal Pump and Dump and they failed to appear. That's a sign my friend, not opening up is a sign we need to remain silent and no longer post ideas, that Health stock ended up working out by churning back and forth. I think I broke even on that yet made a few bucks on the upward move, peace and think about that sector I mentioned, its very hot!
I'm in a tough position. I put $5k in my trading account (granted not much) and put roughly 3k into UCO, 1k into UWTI, and 1k into exxon. Contrary to the idea that UWTI and even UCO are used as day-to-day trades and positions are closed the same day they're traded, I'm holding on. I bought UCO at 24.05 and UWTI at 11.43 and XOM at 72.61. With last weeks rally, I had a 20% gain in UWTI, 12% gain in UCO and 11% gain in XOM. You can look at the current prices and tell the first two aren't holding up well (I'm still up, but not much) and XOM I'm still ahead 9%. What should someone in my situation do? I'm betting Oil will reverse course by November which is when the underlying contracts for UCO and UWTI expire. It's hard because a couple hundred dollar gain doesn't justify getting out. After taxes, fees, commissions, I'm really only making $200. Should I hold long term? I'm not in panic mode and have a lot of faith that by this time next year Oil will be in the 60 range if not more. My real issue is whether or not the ETF and ETN will rise in accordance with oil (which they havent done thus far) or will I just see small gains uncorrelated to their underlying assets. It's hjgh risk and while I'm familiar with how they're supposed to move, the reality is their upside moves at 50% of what their performance should be and downside is the only time they drop 2x/3x in accorandce with their leverage.
Do not hold leveraged ETFs longterm. They'll still have to rebalance daily AND suffer rollover/contango losses on contract changes.
So it's unrealistic to think that once oil gets back in the 80/90 range, these etfs/etns will be much higher?
That Health Care stock almost took out its All-Time High, hope you had a great day, you have my list of ideas, other two stocks were up nicely, great seeing your excellent research. Let's make some real cash my friend!
Scratch the $55 crude forecast. Crude Oil headed to $40 in the weeks ahead, in my opinion, fwiw. When it only peaked above $50 there was huge producer hedging. Goldman Sachs thinks the fundamentals show oversupply.
BP that friend I mentioned keep's shorting Oil Futures so that might be something you need to add to your model. Will explain on the thread, I found a few other great stocks we should be able to grab some extra coinage!