DWTI and UWTI are ETNs... not ETFs. ETNs have daily investment fees like the post below explains. 1.35% daily fee sounds about right. You can read the prospectus. Please do your research as this information is easy to look up. If you are going long oil buy UWTI (3x), UCO(2x), or OIL(1x).
Sentiment: Strong Sell
Fed report out, which confirms a stagnant economy, and so we get a temporary weakness in the dollar and...presto!...oil gets a jump. It can only be temporary just as the dollar weakness is temporary in the face of the global economy. So... with fundamentals (persistently high production and a historically high storage levels) and industry forecasts calling for a return to $50 - 55 oil, I'd say an 8% downside move is a great trading opportunity in DWTI. Oil should remain range bound between $50 and $60 for quite a long time (years).
Yes and smart if you are long oil ... gets you on the right side of contango ... but I think oil goes down, so don't do it ... but nobody knows ... US production can be huge if the demand gets there ... any hint of economic improvement or demand spikes production and lowers price of oil ... lots in storage now ... I think weather hurt Q1 ... long term, Mad Max isn't coming in our lifetime ... lots of oil ... big picture less demand ... like tobacco
These are actually notes (ETN) and not exchange funds (ETF). Characteristics are more of a Bond (unsecured debt note). DWTI follows in opposition to the S&P GSCI (Crude Oil Index Excess) . You can quote this with the symbol SPGSCLP and then compare its daily chart to the DWTI. They generally fit together like a puzzle, inversely proportional to one another, hence "inverse". Opposite of course being UWTI.Keep in mind that this is not a buy and hold investment. It carries a 1.35% daily investment fee (business days only) and has 3 times the bite, when your wrong. These are best traded daily or very short swings.
As with all ETF/ETN's the market makers have to make a spread so in truing up the price they have to adjust. This adjustment (where price discovery happens and retail investors get screwed) happen in the first hour of trading, and the last hour of trading (to meet demand). So never buy/sell ETF/ETN's in the beginning and end of days. Secondly, you have a derivative product which causes noise and it is amplified with the leverage.
Just like they were an oil bear in the low $40s. Seems to me the only true contrarian play is to short the entire energy complex. I was not impressed with retail sales today. No more blaming the weather either. Q1 GDP is being revised to a negative number and I'm seeing a major turnaround for Q2 in the data. There is still the supply demand fundamentals everyone seems to be ignoring. We have equities being propped up by cheap money and stock buybacks and global growth especially in China is contracting to below 7%. Where's the growth engine to keep stocks rallying higher. Where's the revenue growth? Oh, there's low employment. That's right. But what about productivity? Leveraged loans are back 2007 style. Debt relative to GDP and debt relative to a company's equity is at historic highs. And how long has it been since we've had a 10-15% correction? 6 years. Look at China or YANG. YANG is moving off its lows. And Russia? The ruple went from near collapse to stabilization in 2 months? How is that possible? Fools and their money.
so true, if i have to read one more cnbc article about tension in the middle east and oil sky rockets another $2 per day im going to SCREAM!! What a scam and today OPEC says there is more demand for oil but we are oversupplied, LMFAO!!
Dont pretend, when its for everyone to see that this fraud is so over blatant that it have become a joke, and a disgrace to human kind.