I have to agree with that. If this next leg can break to the downside, lower 30's will be coming soon
Loading up? That sounds like an inordinately large position size. Aka, greed. Foremost, USO reflects domestic crude. Not OPEC. Secondly, USO is an ETF, a security mutually exclusive and merchandised by a specialist. IF you glance at my indicators, sorry not updated for 1/12, there's nothing coherent. Forcing a trade is................just that.
Sold SCO today and put it to work in UCO, think it runs back to $15. Aside from that also long DUG, oil stocks like XOM and CVX have yet to price in $30-$50 oil. Think there is a chance of a 20-30% drop in oil stocks over the next 3 months.
Oil can go down to $10 and perhaps even lower $4.. You know why? Because the posted price has nothing to do with real business transactions. Nobody has ever paid $145, it was just a demo, a game for the traders, that price never existed in the real world, it only existed for us poor gamblers trying to short it there. So, it could very well go down to nothing in the short run until the last long is killed, robbed and destroyed. And then... we start all over again
agree on cvx, xom...then again they mostly make money off processing oil not oil reserves they own and sell.
Isn't there some kind of decay that happens if you hold USO for a long period of time. I remember hearing some crazy number that you lose by holding it for an extended period of time. Wouldn't you be better off just buying a stock like PBR that I believe moves with the price of oil and you dont have the fees or losses associated with ETF's like the USO.
Take a look a USO from the weekly time frame. The last monthâs USO price activity was a pullback in the downtrend on the weekly chart. Then last weekâs prices reversed off weekly resistance. This weeks prices just broke below the previous weeks lows. Not good signs for buyers.