Using technicals and charting on leveraged etfs seems very odd to me. Also repeatedly buying them against trend is odd. With the built in slippage they are instruments that should either be bought as a hedge or when everything lines up in your favour imo ( trend, news, short term sentiment ).
Crude drops, just bought SCO premkt
- Thread starter KCalhoun
- Start date
Using technicals and charting on leveraged etfs seems very odd to me. Also repeatedly buying them against trend is odd. With the built in slippage they are instruments that should either be bought as a hedge or when everything lines up in your favour imo ( trend, news, short term sentiment ).
Use caution, we got the semi-annual OPEC meeting coming up in 10 days.
Thx, didn't know that.... will sell most into strength right beforehand, dodge the gap up or down
In my mind there are two schools of thought (This is long-term, yeah. I am guessing you are playing a shorter-term idea here.)
Continued worry about lack of demand due to Delta and a possible new winter surge, dropping CL back into the 40s-50s range. Or a jump back up to the 100 area because the demand worries will be negated by more vaxxed people and more holiday travel.
Not to mention, we still have 4 months left of hurricane season to go. Crude supply disruptions usually lead to an increase in price.
So for the short-term play, let OPEC be the guide. For the longer-term play after OPEC decisions on output, let the Weather Channel and the CDC be the guide, lol!
P.S. As I look at it now, I see CL up ~40 cents on the Oct contract. I have not been following CL much at all so do not know it's Sunday night action. *shrugs*
P.P.S. My instincts tell me the thing is in backwardation though, heading into early next year. Worry worry worry.
It's not a good idea to buy leveraged etfs based on news that likely has no real impact on medium to long term fundamentals. Commodity prices are subject to some big trader manipulation and often reverse when you least expect it. You really can't touch SCO unless you carefully monitor the energy sector.
Short term govt manipulation which doesn't change the fundamentals moving forward. They basically want to drain their reserves which will have to be replaced. If they wanted more production they are doing the opposite of what they need to do. Congrats though on creating wild swings in Oil prices. I'll look at prices Monday morning could be a serious bounce coming soon. OPEC will likely cancel their production increases on Dec 2nd this whole Biden plan is irrational.
This was a knee-jerk reaction to the COVID variant news, and thus lack of demand prospects. As the data comes out on how this new OMICRON BS reacts with current vaccine will be the new headline for the next few months.
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Mostly agree;
they dont trend anywhere near as well as longs/ETFs longs. But with the fed doing much better job than chicom central bank, i like them sometimes.
NOT a prediction+ not insured by any federal agency.
And i would not assume just because the SEC cut their fee, that is a buy inverse signal .