OIL jan at 36, tomorrow will cost 42, why no spike???!

Discussion in 'Trading' started by spanish89, Dec 18, 2008.

  1. I'm In!
    :p

    Maybe Marc Rich and Pinkus Greene can help us?
     
    #11     Dec 19, 2008
  2. Target all out...
    I'm ordering it from Costco Online...
    They are going to put it in those cardboard boxes...
     
    #12     Dec 19, 2008
  3. daybyday

    daybyday

    Thank you Papa Roach, I think I understand contango now.

    Now if I can just figure out backwardation. I believe the gold market is in a state of backwardation... demand is high yet price is low or market price is lower than "street" price...
    anyway thanks for the concise description of contango
     
    #13     Dec 19, 2008
  4. mari

    mari

    i heard there is a 3x crude oil index? what is dxo , is that double?
     
    #14     Dec 19, 2008
  5. ERX is 3X

    DXO is 2X
     
    #15     Dec 19, 2008
  6. hiptogo

    hiptogo

    Jan crude oil moves towards session lows at $33.44

    -2.52 change



    support level? ?
     
    #16     Dec 19, 2008
  7. ERX is a strange one. I traded that a bit. When oil was trading at 48 per barrel, i bought some shares at 36 dollars. Then oil dropped to 41 and ERX dropped to 28, then oil went to 45(i think it was at 45 anyway) and ERX went to 46 (where i sold!) now ERX is at 35 and oil is at 33.

    ERX basically has a life of its own.
     
    #17     Dec 19, 2008
  8. ERX tracks the Russell 1000 Energy Index. There is no 3x for crude directly.
     
    #18     Dec 19, 2008
  9. Also beware that leveraged ETN's such as DXO do not have the same fiduciary safety that ETF's have. So if Barclays bank goes belly up much like Lehman did, you could see your position in DXO get wiped out as the ETN would likely become defunct.

    Personally I'd stick with ETF's such as USO. If you want to employ leverage, just trade options on USO or just trade the actual oil futures themselves. IMO stay away from the leveraged ETN's.
     
    #19     Dec 19, 2008
  10. Mvic

    Mvic

    http://biz.yahoo.com/etfguide/081215/119_id.html?.v=1
     
    #20     Dec 19, 2008