Yet another absolutely HORRIBLE call by you and your "Fight The Trend" trades . . . DCR trading down again today to $2.72 and you are down 13% from your entry point. One day they will have a course at the Harvard Business School entitled, "How Not To Fight The Trend" and your trades will be a "case" study!
The logic that you display in your posts that appear in this TRADING FORUM makes no sense at all . . . You completely miss out on the 13.5% move in the SPX off of the 1250 low ( 170 points! ) posting one "cut and paste" job after another rationalizing why things are so BEARISH for the U.S. Equity Markets, bashing Bernanke the whole way up and whining about how the market woudl be a lot lower had the FED not stepped in . . . Blah, blah, blah, and yet you are patting yourself on the back for catching a "falling knife" in an industry that is getting absolutely CRUSHED by fundamentals? WTF???
Speaking of DCR, are you aware that the NAV of that fund is currently $0.00? Looks like their swap position has wiped out all their assets. And yet you paid $3 for it...
Exactly. But S2007S has no understanding of this "paired" investment vehicle that is "inter-locked" with its contrary "brother" (UCR) and has already triggered its termination when Crude Oil traded above the $111 level for the June contract. Now trading $2.50
I know how it works, I have followed this for quite some time like I mentioned before, the fact is that it makes up less than 1% of my portfolio at this very moment and even though im down from my original purchase price Im not worried at all. You can continue to think that oil is going to 150 or 200 or even 300, keep thinking that, this reminds me of every single bubble that has burst. If you think oil is not in a bubble and isnt ready to correct as much as 15-25% your a fool, oil will correct EXTREMELY hard when you least expect it, I wouldn't doubt if it closes down over $10 in one single trading day, everyone knows that bubbles aren't sustainable.
I know about the swap position, its just one of those risky stock trades im making at the moment, tomorrow if oil is up again im going to add another position with it and am willing to lose it on June 25th when DCR no longer trades. If oil does fall below $100 a barrel by the end of JUNE DCR will more than double.
Before you add to DCR I would get rid of that position entirely and replace it with USO $90 Oct puts, trading around $5.75 right now. Good luck.