Hello, this is my first time posting on this forum. I am 23 years old and just did my first trade about a month ago. I bought around 550 shares of UCO at $8.53 and sold at around $10.50. I am again looking to buy back into UCO now that it has dipped below the $9 mark. Here is my question for you guys, everything I am reading makes it sound like buying into UCO right now is a HORRIBLE idea. All these articles talk about how high the oil inventories are and how the demand for oil is very low. Oil has been following the DJ a lot as of late which has also been taking a hit lately. Projections are talking about oil going down to about $70 a barrel in the near future. Basically these articles to me make it sound like EASY money to just short the oil market. I am a pretty successful sports handicapper and have noticed that when a team sounds like easy money, they usually aren't and I am wondering if this is the case also for oil right now. Do you think buying into UCO at $8.90 is a bad idea with the intent of selling in the next two months in the $10 range? I know the graphs are nothing but history but buying in the $8's has been a good investment lately. Thanks in advance for any responses.
Come on, I read this forum was the best on the I Internet for investing advice. Lete get one response, anything
Come on, someone has to have an opinion on the oil market. I read this is one of the best forums around to get advice.
thats because most people are trading ERX and OIH. UCO looks to be flat at this time. Not much action. When and IF it decides to break out it could rallly hard into the mid $20's though.
Thanks for the response, what makes you believe it will break out into the $20's? 52week high is around $15 I believe.
It is based on the price of crude oil. Very unlikely the price will even get back to $15 anytime soon, unless there is some sort of geopolitical event.
I am thinking the same thing, I can possibly see it going up to the 12's but why would it go up to record highs with such low demand and high inventories. That just wouldn't make any sense, at least not to me.
I went ahead and bought in, my average is $8.98. Hopefully I can sell soon. Thanks for all the replies.