ETF's have become scumbag centers.

Discussion in 'ETFs' started by Nofear777, Sep 22, 2008.

  1. USO at the same level oil was at this price a few weeks ago was 100 dollars... Today it did not react.

    SKF= broken.

    Bunch of other etf's are not trading like they should.

    Looks like these funds are just another game of 3 card monte ripoff.

    I advise against etf's from here on out.
     
  2. Acumen

    Acumen

    SKF readjusted to NAV, was overvalued on Friday.

    USO is tracking futures prices not spot.

    Both are good things for longer term holders.
     

  3. Boy thats great rules for the guys who run this funds when they can "Readjust" at a whim...

    So your saying the future prices are 20 dollars off the actual price of crude?

    Look at the prices.

    OIL (another etf) is also broken.. Hell almost every etf I have traded last 2 days are a complete scam..

    Time to abandon the etf's, jump on that actual product.
     
  4. You probably don't understand how they're weighted.

    The ETFs are not overweight in the front month so close to expiration, and most certainly weren't holding any Oct CL that expired today in that massive short covering.

    If you look at the daily change of all open oil contracts, it was up 6% today. Stockcharts $WTIC tracks the weighted average of all CL contracts:

    http://stockcharts.com/h-sc/ui?s=$WTIC&p=DAILY&b=5&g=0&id=p68484897267

    The daily movement matched OIL and USO:

    $WTIC +5.92%
    USO +6.04%
    OIL +5.56%

    Seems to be working to me.

    SKF/UYG were indeed broken on Friday, but everyone should have just been trading XLF until they were unbroken.
     
  5. Read the prospectus before slagging them off for doing their job (SKF etc excepted).
     
  6. not a fan of ETFs I like outright ownership of the equities themselves.
     
  7. S2007S

    S2007S

    SKF is priced about right at the close of today. If you need to see the IV of SKF type in SKF.IV on yahoo.


    ndex Value: 102.80
    Trade Time: 4:53PM ET
    Change: Up 16.85 (19.60%)
    Prev Close: 85.95
    Open: 85.95
    Day's Range: 85.95 - 102.80
    52wk Range: N/A
     
  8. USO hold Nov CL contracts. Thats why ETFs are awesome, because you can punish the people who dont know whats going on with relatively low risk.
     
  9. 8/21/2008

    Cl #F a high of around 121, closed around 121.

    8/21/2008

    USO a high of around 98, closed around 98.

    Today.

    CL #f

    A high of around 130

    Uso

    A high of 89...

    So tell me what changed so drasticaly within less than a month that USO is off by 12% of where it was relatively a month ago...

    Something seems broken.
     
  10. Nofear777,

    October's CL contract expired today, its close price is meaningless. It was run up $25 in completely illiquid conditions as the last remaining shorts scrambled to get out before being forced with physical delivery.

    Ignore the close & daily change of Oct. Only look at Nov and further out. See my last post about weighted average of all CL contracts. Most of all READ.
     
    #10     Sep 22, 2008