Loading up on USO

Quote from efficiency:

Loading up? That sounds like an inordinately large position size. Aka, greed.


Secondly, USO is an ETF, a security mutually exclusive and merchandised by a specialist.

IF you glance at my indicators, sorry not updated for 1/12, there's nothing coherent.
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a]Maybe;
unless he is Michael Marcus,or Rich Dennis.

b]Dont think of the specialist as an enemy;
but you may know something i dont,efficiency.

c]Eric Bolling[FOX] noted opec has a long record of cheating;
which maybe bearish in short term.Most oil prices/unleaded gas are in long term uptrends. So i dont have any problem with your short term trendline.
 
There may be a double bottom forming in daily USO. But the trade
will not trade place until there is a break out past $38.75 unless this is a different set up than the typical one?
 
Quote from Rabbitone:

There may be a double bottom forming in daily USO. But the trade
will not trade place until there is a break out past $38.75 unless this is a different set up than the typical one?
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UGA has a nice uptrend on weekly,3 weeks up/ IF this week CLOSES up? Besides it looks much cheaper than gold, a luxury. Oil /gas is necessity.

Mr. Eric Bolling [FOX/oil/gas specialist];
said something about oil following unleaded gas uptrend................................................................................

Also i did not mean to imply just anyone should trade like M.Marcus. Rich Dennis, did mostly long term trends;
later on he does [admit]some countertrends.

Agree with Nickname / efficiency ,greed is a serious error;
the fact USO did go up one day means not much.
1%-5% is the figures mentioned [position size] by top traders in Jack Schwager top trader books

King Solomon put gold on his horse stable, probably not greed;
if i paved my shorter than average driveway with pure gold ,
most would scream/call it greed.Not so, HEAVEN streets are PAVED WITH SOLID GOLD .

Also Rabbit, i remember when gas was 00. 29/9 per gallon[long term trend/LOL];
so gas or oil is very cheap[NOW], sure it could go down another 50%, but not likely.

sincerely,
murray TT:cool:
 
Murray t turtle – It appears we have the same memory of cheap gas. I also remember in high school when they could not give gas away at $0.299 a gallon on hot spring day in the1960s LOL. A buddy and I were going to fill up a big storage tank he had so we could drive the chicks on endless cruises on our newly found source cheap gas. Ahhhh… what a pipe dream.

To me, oil that is cheap or high is not part of my trading. I only trade the technical set ups that are in my plan.
 
Quote from Rabbitone:

Murray t turtle – It appears we have the same memory of cheap gas. I also remember in high school when they could not give gas away at $0.299 a gallon on hot spring day in the1960s LOL. A buddy and I were going to fill up a big storage tank he had so we could drive the chicks on endless cruises on our newly found source cheap gas. Ahhhh… what a pipe dream.

To me, oil that is cheap or high is not part of my trading. I only trade the technical set ups that are in my plan.
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RabbitOne;

Investors Businesss Daily had an interesting article in energy etfs;
accessed thru yahoo.com, quote on XLE recently . They made a good case for shorting XLE based on technicals & fundamentals. Did it on one year price & volume chart .:cool:

And Mr Buffet's buys or multiple buys of COP , is not necessarily bullish for XLE, he tends to do better than average. COP making higher lows, higher closes on a 1 year chart, since 11-21-08 is not really a stock tip or prediction .
 
Traded as low as 28.84 today.

That is the lowest that the USO has traded with the exception of 27.73 on Dec. 26th.

Still seeing an outrageous spread between Feb/March crude . . . now +$8.00
:eek:
 
That is the scary part of going long right now. USO owns the March contract, but I think we have to wait until the contract rolls and see what March contract does before getting long.

I played UCO last month and didn't realize how bad the contango would be to these ETF's. I don't think most people even realize what they are trading when they buy them.
 
I hope no one is surprised when oil gets down to $25 a barrel, remember $100 oil isnt coming back for years and $200 oil probably never. The oil bubble was nothing but media driven hype, anyone who thinks peak oil drove oil to $150 is a fool. There isnt any demand for oil and wont be in many years due to the deepest recession EVER to touch the economy.
 
Quote from junglerott:

That is the scary part of going long right now. USO owns the March contract, but I think we have to wait until the contract rolls and see what March contract does before getting long.

I played UCO last month and didn't realize how bad the contango would be to these ETF's. I don't think most people even realize what they are trading when they buy them.
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This is exactly what I'm worried about. USO isn't an ETF holding crude oil, they're buying future contracts. Where they make a loss on even when oil goes up.
 
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