Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
USO got destroyed today. Under $5 again after markets.
I had bought 1000 shares last night and was up only about 40 bucks this morning so I sold it ..It didn’t get the bounce I expected ..got out just in time ....if it stayed in the 4.95 range I was ready to buy again at the close
So it appears as if Thursday's meeting might not come off after all. Who knows? But it appears that foreign producers might just be trying to drive down the price of Crude to bankrupt the shale oil producers bringing us back to a situation where we are dependent on foreign oil. Again.
The United States Oil Fund (USO), which tracks the price of oil, was halted for trading temporarily amid the wild activity into the end of the session. The exchange-traded fund resumed trading shortly after the initial halt.
Don’t buy USO. Unlike other community ETF that track the price, USO roll over their futures contracts month. That mean, if the futures is traded a premium, over time, the USO can loss money even when oil goes up in price.
Don’t buy USO. Unlike other community ETF that track the price, USO roll over their futures contracts month. That mean, if the futures is traded a premium, over time, the USO can loss money even when oil goes up in price.
Something to look out for for sure, but it's still the easiest and least expensive way to get in on oil as directly as possible. Percentage wise, I've made a mint. On paper at least...
Don’t buy USO. Unlike other community ETF that track the price, USO roll over their futures contracts month. That mean, if the futures is traded a premium, over time, the USO can loss money even when oil goes up in price.
They give benchmarking and tracking of performance vs nav right on their site. The data would suggest the error in tracking you suggest isn’t really born out
I was very close to putting a lot of money into oil if I could have bougt the spot price last week. But doing research on the funds and the potential for contango like in 2016 when USO was down 1% despite oil goiung from $29 to $47 form Feb to Aug 2016, that scared me away.
Seems like a nice tool for betting on a decent sized runup (5-20%) within days or maybe weeks, but holding more than 1 month contango scared me away.
I mean if oil traded flat at $19 to $20, well ok I would have been all in last week if the spot price would keep my money flat, but if the fund causes me to lose decent or even a lot of money over it yikes as it is not the spot price of oil. And I have read oil is in huge contango as of now with future expected contract prices being higher than spot prices.
Now granted if oil is flat it is possible maybe the fund would be flat too, but there was too much risk of it losing money that I decided to not take the plunge.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
