This is a great time to buy as the price is down a bit. Right now, the quarterly dividend is .30 per share which translates into an 11% annual dividend. Unless you are retired and need the dividend for income, you should reinvest in more shares.
This is a 5 star stock. One you hold forever.
Ask a professional (a really GOOD professional) trader and they will tell you the best way to lose money is waiting for the bottom and waiting for the top. When you discover you waited too long, you panic sell and lose money.
1 in 10,000 get very lucky and call the bottom and the top.....once. 99% of all money made in securities, ETNs, forex and any other financial vehicle is made somewhere in the middle.
If UGAZ went up 50% in a week, and I made 10% during that week, I'd be dancing in the street. 10% profit....IN ONE WEEK! I'd be happy if my portfolio went up 10% in a year long term.
Bears make money
Bulls make money.
Hogs get slaughtered.
UWTI is a day trade ETN. I have been posting and trading for over a year and have held longer than 2 days once.
Page 1 of the prospectus is clear about this being a day trading vehicle.
It dropped because the EIA (government) number of a 2.2 million barrel drawdown were way off API (corporate) numbers released yesterday. Whenever there is a large discrepancy, WTI futures move, up or down depending on which is the better (more barrels drawn) number.
I'm out, and maybe for some time. This is my opinion backed by nothing but a gut feeling. WTI has nearly doubled from that awful drop to $25 this year, and I don't see that much upside. My best guess (and it's only a guess) is a range of 45 to 55 for WTI futures.
You've read enough of my posts to know I'd rather miss the boat than be on the one that sinks. WTI is down again PM and I just don't feel comfortable investing right now.
Just my opinion, but you know the old saying about opinions being like butts (I wish Yahoo would allow profanity). Everybody has one.
But don't expect the big daily gains of the past to return. Crude is trading in a range, about $45-55. Keep your stops tight and your expectations reasonable, such #$%$7% gains then sell.
There are no more home runs in WTI futures. Think like a singles hitter.
Reverse splits are initiated to keep the price above a certain amount in order to avoid a warning or possible delisting. They also serve to attract new investors. Reverse splits have no effect on the value of any ETN (it's not a fund). Please educate yourself about leveraged ETNs or you will lose money.
Crude oil is bought, sold and trades the futures market in US dollars, which is the default currency for international trading. If the dollar rises, you can buy more oil from exporting countries for the same amount of dollars, so the price of oil drops. The correlation between the US dollar and the price of crude futures is very much tied together.
"Dear Janet: Now that you have all that time on your hands, why don't we get together. I play Pebble Beach at least once a week.
Well thought out post. It seems nearly all the intelligent posters have left the board, with 2 or 3 notable exceptions. I'm out of speculative plays for a while. This morning, most of my money went into NLY, VDC and a couple of utility mutual funds. This may take 2 years to sort itself out.
Great Britain (England, Wales Scotland and N. Ireland) entered the EU as a package deal and go out the same way. Scotland and N. Ireland would have to declare independence from England and re-enter as sovereign nations. No chance.
You are right about the mess getting worse, but the impact on the USA will be minimal. Also, China will not be affected too much. The real problem may come in the future if other nations decide to leave. You should google "EU regulations" to see how much autonomy within their respective countries have given up in the name of free trade. Most internal trade laws are dictated by Brussels, and some are unbelievable.