in fact, you may not even call $2 billion oversupply is an oversupply if averaging it out cross the world of oil consumers. We hate ourselves. That's what it is. We are our own enemy. We need an enemy that we can't win over easily. We find this enemy in the end. and this enemy is ourselves.
the only viable prescription is suicide.
Still, 100 million barrels in oversupply at Christmas is not an easy number to digest even if it only means $2 billion dollars if costing $20 per barrel. Do you think the market would blink if a $2 billion company goes bankruptcy? So, it is not the oil nor its price getting into the crash of a bull market. hard to qualify what it is. they just blame hard on something it does deserve a word in a normal world.
The Fed seems determined by now on gradual tightening. The pipe for free money is cut off for near future to generate free cash flow and then to adjust internal balance of individual entities. There are many ways to do so. One could run on sales by return on assets, lowest return going out first.
Regarding DUST specific, dollar will get stronger from next QE by EU and weaker European and Japanese banks. Negative interest rate could have some unintended consequences for central bankers in those two regions to manage. Continuing weaker oil price could do harms on our banks as well, but the damage is very limited. In the meanwhile, our banks already set aside cash to deal with possible worst case scenarios.
ETF trading like transactions of any other assets becomes difficult. We have to hedge our bet on almost any purchase. Even if we wish to have one big down day to wash out all worries, the main street doesn't feel the same, and its behavior in consumption will tell an unexpected story. I mean to say not the way as we wish. Either way of gloom and doom will be very slow, very unpredictable from the main street. After all, the Wall Street is a reflection of these behaviors.
Sell what you hate the most. Cash is King because you can use it to build another Kingdom. Hold you DUST because cash is the King and DUST is the cash. Right? When cash/dollar is strong, gold does down. remember that?
when irregularity becomes regular, I smell the change is coming. Dollar is getting stronger as yields weaker, but gold fly higher. The fear of recession is at the its peak? Not really. UVXY is not at its peak. These are the irregular in the trading. I wouldn't even call these as fear, other than chaos.
great trade. We jumped to the other side on the closing bell.
UWTI holders should get prepared for one more reverse split. We are in a real recession by reading of US 10 yrs at 1.85. This is an insane number for those who do not admit the US is in recession. Is the Fed waiting for negative US 10 yrs? We don't ask what the heck is going on any more. We have to do what is necessary to sustain the corporate America, not even America any more. LAY OFF, massively and in Bold mode!
The oil industry is in a survival game for now and will boom again.
Linear or exponential or in between? None of ETFs is designed in linear/proportional model.
Don't worry, we will be in 3s soon.
from 2.61. Crude will reach 38 level sooner than you fart.
Both are in my holdings. the only difference is I bought most of FB from my sister, who didn't believe FB could reach 150. LOL.
I was so exited about 5 seconds. Then you know how disappointed I fell through. Damn. They are the twin after birth.