If Oil Gets Smacked Down, Equities Will Run

Discussion in 'Trading' started by ByLoSellHi, May 28, 2008.

  1. Well, I blew this call.

    Time to man up.
     
    #41     Nov 17, 2008
  2. bellman

    bellman

    It's those damn speculators driving the price of oil down... they all need to be arrested!

     
    #42     Nov 17, 2008
  3. S2007S

    S2007S


    Right total losers, just take 2 minutes to see where each of those inverse etfs went,

    By the way I'm in DUG as of last week around $38, and guess what if it falls below $30 I will average down just as I did last time.

    Haha
     
    #43     Nov 17, 2008
  4. Yes, but you were also DUG when oil was at it's all time highs. So holding from then is no different than stock_trad3r who continues to claim there will be a 4000 point rally. Eventually, some day, he'll be right and the Dow will hit 14,000 again. Some day.
     
    #44     Nov 17, 2008
  5. I agree, and in the meantime I am VCA into USO looking for a 3 - 5 year horizon. Shorterm, its certainly down, but for how long?


     
    #45     Nov 17, 2008
  6. jprad

    jprad

    Why USO over OIL, DBO, DIG or even a basket of them?
     
    #46     Nov 17, 2008
  7.  
    #47     Nov 17, 2008
  8. BadCo

    BadCo

    You have a gift, my friend.

    [​IMG]
     
    #48     Nov 17, 2008
  9. jprad

    jprad

    Your first post mentioned a 3-5 year horizon. So, I assume you mean that you're going to establish your position over the next 3-12 months, correct?

    If that's so then the liquidity of all of them are sufficient.

    My question has more to due with the performance of each relative to crude. None of them have tracked to the price of crude as well as GLD has tracked the price of gold.

    That considered, DIG's 2x performance should help to offset some of that inefficiency and spreading your bet across DBO and OIL should reduce external risk of any one fund getting shut down as was the case with UCR earlier this year.

    IMHO, of course.
     
    #49     Nov 17, 2008
  10. jprad

    jprad

    Seriously, stock_trad3r is a friggin' savant, so long as you take the other side of his calls.
     
    #50     Nov 17, 2008