If Oil Gets Smacked Down, Equities Will Run

It's those damn speculators driving the price of oil down... they all need to be arrested!

Quote from dividend:

Now that the stocks and oil are down -40% or more, all analysts are calling for deflation.

Oil $50 and below is probably more bullish for stocks and the economy in general. The more it panic sells lower the better. It is like free money being injected into the economy.

I think this will help stabilize the economy until the next round of unemployment.
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Quote from Landis82:

You mean just like back on April 2nd when you told everyone here on ET that you bought TWM at $76, SKF at $101, EEV at $76, and the DUG at $37?

http://www.elitetrader.com/vb/showthread.php?s=&threadid=123616&perpage=6&highlight=dug&pagenumber=2

Looks like those were ALL total losers with a draw down in the 30% neighborhood.
And now you are adding more???

:eek:
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Right total losers, just take 2 minutes to see where each of those inverse etfs went,

By the way I'm in DUG as of last week around $38, and guess what if it falls below $30 I will average down just as I did last time.

Haha
 
Yes, but you were also DUG when oil was at it's all time highs. So holding from then is no different than stock_trad3r who continues to claim there will be a 4000 point rally. Eventually, some day, he'll be right and the Dow will hit 14,000 again. Some day.
 
I agree, and in the meantime I am VCA into USO looking for a 3 - 5 year horizon. Shorterm, its certainly down, but for how long?


Quote from dividend:

Now that the stocks and oil are down -40% or more, all analysts are calling for deflation.

Oil $50 and below is probably more bullish for stocks and the economy in general. The more it panic sells lower the better. It is like free money being injected into the economy.

I think this will help stabilize the economy until the next round of unemployment.
More...
 
Quote from Brucelee:

I agree, and in the meantime I am VCA into USO looking for a 3 - 5 year horizon. Shorterm, its certainly down, but for how long?
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Why USO over OIL, DBO, DIG or even a basket of them?
 
Quote from jprad:

I like the liquidity over the other two OIL and DBO, DIG looks interesting but since it seeks to double the range I wont trade it unless I see the trend change. Remember, this is a VCA play over a period of 3 - 12 months. I only have a 10% position right now, the bottom is supposed to be around $37, but who knows exactly where it is.

Why USO over OIL, DBO, DIG or even a basket of them?
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Quote from stock_trad3r:

lol oil is not going to collapse and the dollar will continue to fall. Paulson, Ben, and Bush aren't worried about the falling dollar because it is actually beneficial to the US economy.
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You have a gift, my friend.

oilchart.gif
 
Quote from Brucelee:

I like the liquidity over the other two OIL and DBO, DIG looks interesting but since it seeks to double the range I wont trade it unless I see the trend change. Remember, this is a VCA play over a period of 3 - 12 months. I only have a 10% position right now, the bottom is supposed to be around $37, but who knows exactly where it is.
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Your first post mentioned a 3-5 year horizon. So, I assume you mean that you're going to establish your position over the next 3-12 months, correct?

If that's so then the liquidity of all of them are sufficient.

My question has more to due with the performance of each relative to crude. None of them have tracked to the price of crude as well as GLD has tracked the price of gold.

That considered, DIG's 2x performance should help to offset some of that inefficiency and spreading your bet across DBO and OIL should reduce external risk of any one fund getting shut down as was the case with UCR earlier this year.

IMHO, of course.
 
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