Oil contango means QM is a bad buy?

Thanks. I'm following this discussion regarding 2x or 3x ETFs.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=152707

One guy said he didn't think ETFs are great for investing. I wonder if he meant only the highly leveraged ones, or if he meant any ETF. I know there are management fees involved.

PS - just checked out the chart of USL. I see what you mean about the volume. The intraday chart looks nothing like USO, which looks kind of similar to the QM, right? USL looks completely different. No big spike up/selloff between 1 p.m. and 3 p.m on Friday., as far as I can see.

Daily looks closer, I guess....
 
you have 4000+ posts but never really traded futures? Hmmm....makes one wonder.....what do you trade then?


Quote from traderNik:

Really?? Hmmm. Pretty basic. I've never rolled one over. Thanks.

So assuming that a small amount of contango is the norm on a futures contract that involves non-perishables, if the contango comes back to normal it can be a good trade.

Nevertheless this is a surprise to me. A lot of people here seem to be unaware of the problems involved in going long the QM while the contract is in contango.
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Quote from IluvVol:
you have 4000+ posts but never really traded futures? Hmmm....makes one wonder.....what do you trade then?
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Quote from traderNik:
(my futures trading has always been very short term).
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Get your head out of your ass and re-read my post, junior. I said I've never rolled a contract over. I'd be willing to bet there are a few other futures traders here who haven't rolled one over either. The whole point of the fucking thread is the effect of contango on rollover and the potential for profit on a position eentered now for the longer term. Are you so fucking stupid that you didn't pick up on that?

Also, have you ever heard of things called 'stocks'? What do I trade?? I trade those more than I trade futures. You can do a Google search and get more information about 'stocks'.

Piss drunk at 12 noon. Just another wanna-be trader with a dial up connection in Mom's basement.
 
lol, junior? Funny attitude for someone who DID trade futures but does not even understand the difference in pricing between the front month and farther out months. That implies you also dont understand forward pricing. Also, where did all those 4000+ posts go, calling others names and asking really stupid questions rather than doing a simple Google search YOURSELF. Get a life buddy!!! ;-)


Quote from traderNik:

Get your head out of your ass and re-read my post, junior. I said I've never rolled a contract over. I'd be willing to bet there are a few other futures traders here who haven't rolled one over either.

Also, have you ever heard of things called 'stocks'? I trade those more than I trade futures. You can do a Google search and get more information about 'stocks'.

What do I trade? Fucking imbecile.
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Quote from IluvVol:
Ok, I fucked up and misread the post. However, I'm not enough of a man to just admit it and so I'll make up some absurd shit about you, when I don't even know you, and then suggest that asking a question about negative roll yield, which everyone knows about, is stupid, and that every trader on here who doesn't understand negative roll yield shouldn't be daytrading futures
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No problem. I accept your apology. I do understand that there's a problem with literacy in your circle and reading comprehension isn't your strong suit. Perhaps some community college night courses can help you out. It's never too late to improve yourself.

By the way, if you're having a problem understanding the difference between contango and backwardation (which I have just learned about as a result of looking at crude) you can try a search at this cool website

www.google.com
 
I DID NOT WRITE THE BELOW. I never apologized... for what? For displaying your lack of smarts? You even have the guts to make stuff up and send it in others' names? This is probably as unethical as it gets and just earned you a complaint. What a lowlife!!!

And just because you came across the two ways back and front future differentials can trade does not mean others dont understand. I suggest you really dont dig a deeper hole for yourself it starts to get embarressing.


Quote from traderNik:

No problem. I accept your apology. I do understand that there's a problem with literacy in your circle and reading comprehension isn't your strong suit. Perhaps some community college night courses can help you out. It's never too late to improve yourself.
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Quote from IluvVol:

This is probably as unethical as it gets and just earned you a complaint to Baron, because I'm a whiny little fuck.

And just because you came across the two ways back and front future differentials can trade does not mean others dont understand.
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Whiny little prick. Go cry to your mommy, who's upstairs making your lunch as we speak. Just put some pants on before you go up.

And so what if I'm asking a question about negative roll yield in a 'super contango' situation in crude? You think I should be embarrassed to ask that question? You think that every trader on here knows the details about it? If you do, you're a moron.

Oh, wait a minute. We already established that.

I see you're editing your posts furiously. Why did you take out the 'to Baron' at the end of your whiny little threat?

Brother, you're in over your head with me. If you have an interest in trading, you should learn to cut your losers short. Do so now and go play somewhere else.
 
no comment needed ;-)


Quote from traderNik:

Whiny little prick. Go cry to your mommy, who's upstairs making your lunch as we speak. Just put some pants on before you go up.

And so what if I'm asking a question about negative roll yield in a 'super contango' situation in crude? You think I should be embarrassed to ask that question? You think that every trader on here knows the details about it? If you do, you're a moron.

Oh, wait a minute. We already established that.

I see you're editing your posts furiously. Why did you take out the 'to Baron' at the end of your whiny little threat?

Brother, you're in over your head with me. If you have an interest in trading, you should learn to cut your losers short. Do so now and go play somewhere else.
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