Thanks. I'm following this discussion regarding 2x or 3x ETFs. http://www.elitetrader.com/vb/showthread.php?s=&threadid=152707 One guy said he didn't think ETFs are great for investing. I wonder if he meant only the highly leveraged ones, or if he meant any ETF. I know there are management fees involved. PS - just checked out the chart of USL. I see what you mean about the volume. The intraday chart looks nothing like USO, which looks kind of similar to the QM, right? USL looks completely different. No big spike up/selloff between 1 p.m. and 3 p.m on Friday., as far as I can see. Daily looks closer, I guess....
A decent first article for those trying to understand the effect of contango on ETFs and futures http://www.marketfolly.com/2009/01/how-contango-affects-crude-oil-etfs-and.html
Thanks....good article. It seems to me that the best way to invest in oil is to buy stock in a financially strong oil company that has lots of oil wells and proven reserves. Stosh
you have 4000+ posts but never really traded futures? Hmmm....makes one wonder.....what do you trade then?
Get your head out of your ass and re-read my post, junior. I said I've never rolled a contract over. I'd be willing to bet there are a few other futures traders here who haven't rolled one over either. The whole point of the fucking thread is the effect of contango on rollover and the potential for profit on a position eentered now for the longer term. Are you so fucking stupid that you didn't pick up on that? Also, have you ever heard of things called 'stocks'? What do I trade?? I trade those more than I trade futures. You can do a Google search and get more information about 'stocks'. Piss drunk at 12 noon. Just another wanna-be trader with a dial up connection in Mom's basement.
lol, junior? Funny attitude for someone who DID trade futures but does not even understand the difference in pricing between the front month and farther out months. That implies you also dont understand forward pricing. Also, where did all those 4000+ posts go, calling others names and asking really stupid questions rather than doing a simple Google search YOURSELF. Get a life buddy!!! ;-)
No problem. I accept your apology. I do understand that there's a problem with literacy in your circle and reading comprehension isn't your strong suit. Perhaps some community college night courses can help you out. It's never too late to improve yourself. By the way, if you're having a problem understanding the difference between contango and backwardation (which I have just learned about as a result of looking at crude) you can try a search at this cool website www.google.com
I DID NOT WRITE THE BELOW. I never apologized... for what? For displaying your lack of smarts? You even have the guts to make stuff up and send it in others' names? This is probably as unethical as it gets and just earned you a complaint. What a lowlife!!! And just because you came across the two ways back and front future differentials can trade does not mean others dont understand. I suggest you really dont dig a deeper hole for yourself it starts to get embarressing.
Whiny little prick. Go cry to your mommy, who's upstairs making your lunch as we speak. Just put some pants on before you go up. And so what if I'm asking a question about negative roll yield in a 'super contango' situation in crude? You think I should be embarrassed to ask that question? You think that every trader on here knows the details about it? If you do, you're a moron. Oh, wait a minute. We already established that. I see you're editing your posts furiously. Why did you take out the 'to Baron' at the end of your whiny little threat? Brother, you're in over your head with me. If you have an interest in trading, you should learn to cut your losers short. Do so now and go play somewhere else.