It seems like oil spiked 25% off the lows on speculation that there may be "talks" to "possibly" discuss production cut backs. If it were as simple as a talk, it would have happened 1yr ago. Oil will dip back into 20s.
DWTI is currently $244 and it was $365 when oil was $30 (and it peaked at $465 when oil dipped to $27). This ETF is volatile but a good opportunity for a big up swing.
I believe the spike was on FORCED short covering by the late-to-the-trade retail shorts. I would only be interested if oil gapped up above $35 and I could snag some DWTI at more of a discount... that "story" floated by the media has been proved false now, so we may see it continue to bleed lower... gotta play it by ear.
GL though
Last Wed I originally bought in for $310 and doubled my position at Fri morning at $230 (so my average was $260). Today I sold half my shares for $324 (20% gain).
I don't want to get greedy but I think it could creep over $400 if oil slips into the $28s.
I have a bigger position in HED.TO which is also an anti-oil ETF but it doesn't fluctuate as much. Unfortunately my average price was $23.10 so I am about even on that one...for now.
You're Even for now ? .. Not good considering how well you've time your previous bet... but it all averages out I guess.
You'd be better off buying an oil company at these levels and sitting on your investment (and get paid a dividend). Where do you think oil will be in 2-3 years. ($30 ?)
that's decent advice Rush (cheers buddy) -- while I don't expect MOST of the oil majors to end their downtrends until the scale and scope of the coming defaults in shale co's and bank exposure to become known and discounted, it's not unwise to begin nibbling at your favorite companies in the energy space -- just realize that those dividends are not entirely safe and that the discounting of your principle (stock falling further) might not be made up by the divvy.
I believe that miners and especially gold mining stocks are the best value BY FAR in the market. My picks are GG and AGI, we recently began snapping up GG below $10 (very briefly) and have been adding on weakness since... AGI is a cheaper spec junior but it could outperform the bigger diggers shorter term.
wallstreetcappers -- YES -- ask yourself why gold hasn't plunged the way oil has -- in terms of US dollars. Then go do some homework regarding global systemic risk, world currency (fiat) inflation, and what the true "risk-off" trade would look like if gold were allowed to seek its true value with regard to demand instead of what paper contracts fetch at the Comex (read: Crimex)... then go see where gold trades in all 48 currencies; you will find that in 8-9 currencies gold is back at all time highs. Check historical crude to gold ratios too.
Miners have traded below book for too long, and gold's chart is a beautiful rounding bottom. Look for a breakout above 1195 soon, the shiny stuff has already seen about a 50% retracement from the 2011 highs to the 2015 lows. Premiums for physical Au and Ag for that matter are well above spot, look for the US mint to discontinue their coining and sale of silver eagles this year.
I missed big profits last week by being on the sidelines when DWTI jumped to $385 (like I had predicted), but at least I was able to dump my HED.TO during that spike.
Today I bought back in to DWTI for $231. I am hoping that oil volatility continues (weekly $32 to $28 swings) so I can make a quick 10-20% and get out.
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