I read a few eye opener about the EFT 2x this week , and my long position in oil thru DXO now seems quite scetchy . So if these ETFs are very bad for long term position what should I be getting to be bullish on oil ? I don't do futures and my timeframe is variable (I would sale an over extended parabolic - and probably buy the pullback). Any advice ? thx...
2 ways 1) Lever up through a traditional margin account and buy the USO. 2) Buy call options on the USO. - however, with the oil market in contango, combine that with high volatility (i.e. premium) and you have the makings of a really shitty trade. If you nail the front-month on a wicked reaction rally, say up to $60+ - you'll do o.k. with those calls. But, you're timing has to be exquisite. I would just nibble on the USO down here. The economy is going to have get its legs back before oil has any meaningful upside IMO.
BlindLemonBoosh are you saying that with "OIL" I woudl get a good long term play with some leverage ?
If you want to buy oil, just buy crude futures! Or mini-crude futures (QM)! All these ultrashort / ultralong / ultrastupid / ultrailliquid ETFs are the stupidest shit I've ever seen. "NOW THERE'S AN ETF DESIGNED TO GO UP WHEN THE YEN GOES DOWN! THE INVERSE YEN ETF" AD NAUSEUM Come on! Just trade the f'ing futures! Put it this way, if you're finanically or emotionally UNSUITABLE for futures, you're probably also unsuitable for the ETF you're contemplating on trading (badly). Trade CL or QM or SHUT UP ABOUT IT! --Futures trader who thinks all these future-contract mimicking ETFs are dumb.
My problem his that the current broker , i'm with up here in Canada dosen't offer Futures. Otherwise I would certainly learn how to use them for my energy bullishness ... I' am therefore trying to find something close enough... I'm currently Long DXO , but I'v read this week that they are mostly an intraday, or at best, a very short term swing trade instrument... It got me quite pissed to be honest ...
The OP said in his first post he does not trade futures, are you illiterate? Stay off the internet when you are drunk.