Appears that the buy on dip strategy is back. This seems to be true for OIL and market in general. The 10% correction has finally happened, and the market is adjusting to start its trend higher. History doesn't always repeat, but does remind us of what market turmoil does to our psyche. Recall this:
'Asian Financial Crisis'
Also called the "Asian Contagion", this was a series of currency devaluations and other events that spread through many Asian markets beginning in the summer of 1997. The currency markets first failed in Thailand as the result of the government's decision to no longer peg the local currency to the U.S. dollar. Currency declines spread rapidly throughout South Asia, in turn causing stock market declines, reduced import revenues and even government upheaval.
The Asian Financial Crisis was stemmed somewhat by financial intervention from the International Monetary Fund and the World Bank. However, market declines were also felt in the United States, Europe and Russia as the Asian economies slumped.
This taunted us for several months, then the markets recovered, and off to a bull run 'til tech wreck in '2000.
You have great patience. My fear is that contango will erode value of OIL over time, and may require higher and higher WTI price to get back to break even. the rocket ride up last week was promising, and moves like that make trading OIL an easy way to swing trade, and make little profits here and there to lower cost basis. Right now, I only have a small amount beyond my core holding. I will try to resist adding more until OIL in low 7's again. (I hope it never gets there, but if does I will start loading up again, and hopefully get another rocket ride up, like last week!
This is without a doubt an opportunity of lifetime. The whole market is on sale. Quality companies like BABA available at bargain price, that may never be seen again. The risk is market crash like 2008/2009, and reward is obvious double or triple of money invested by this time next year. I am on sideline, but will buy in premarket session if trading down or flat before market opens. Glad I waited, but don't want to miss the great bounce that is bound to happen soon!
Hard to know what to do. I will buy more today, for swing trade. I got burnt last time I did this. ?big money traders market?
Taking all I have to resist taking profit here. Up 10% then 7% then 6% in 3 trading days! So hard to think will not be oportunity to get back in with pullback. I wish I had bought more this morning instead of taking a nap!!!!!!!! I will not take profit today. Long and staying strong!
Warren Buffett's Berkshire Hathaway Inc disclosed a $4.48 billion stake in oil refiner Phillips 66 , rebuilding a bet it had made in the energy industry before oil prices fell.
My take on this: Hold OIL for long run. Buy PSX with any major pullback, and that way, oil price go up or down, cannot lose!
Great timing! You got a great price. I bought more at $7.17 last week. I would have bought more today, but took a brief nap and then OIL up another 5%!!! I will just hold what I have now! Will not sell 'til WTI ~ 100
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It's so nice to be on sideline right now. But, expect few windows of opportunity left to get in at bottom, mid 60's. I cannot imagine this going much lower than that, however I also never thought DDD would be approaching single digit stock price. Just never know what might happen when high volatility and panic selling sets in.
You witnessed a "short squeeze". Oil will likely be volatile and return to low 7's again. I took some profits after the 17% rise, and now only holding my original core holding. I will be buying aggressively if we get back to low 7's. I will likely buy something Monday, even if we just dip to low 8's.
I thought the same about fannie mae (FMN) in 2008. I bot at $20, then sold at $1/share. OIL will not go away. If gets low enough, there will likely be a 1:10 reverse split, and the decline could continue indefinitely.
At some point, the world has to get back to growth, rather than deflation. But, will this happen in 2 years vs 20 years is the question. I am holding OIL, and staying mostly in cash with selective buying for swing trades as opportunities present. No point in risking all eggs in one basket at this time, and Cash is King!
My account looks pitiful, and that is even with large cash position. The OIL losses have been devastating. I sold NTAP today for securing a profit, since so long since I made successful trade. Nice seeing OIL up a bit. But, overall market and macroeconomics still looking bad. Aug thru mid Oct always volatile for stock market.
OIL is acting like it wants to go higher. I will be concerned if sell off later today. No trades today, just watching. Nice seeing a little green in my account for once. I was long NTAP into earnings, so less concerned about OIL today, but still quite long OIL.
It's possible. Everyone is saying that will go lower. Supply greater than demand, and demand predicted to fall more, with expected pick up in supply. Just never know when some unexpected event happens to turn the tables, then will see a spike higher that will be hard and scary to chase.
I got this trade all wrong, entered way too early. But, I have offset some losses with gains in other investments, and have a lot of cash on sidelines to reinforce my holdings with a click of the mouse. However, with entire market tanking, i may bottom fish outside of OIL for more diversification, just in case OIL stays down for protracted time period.
I may wait until WTI in 20's or teen's before double down, I may add a small position for swing trade at $35 level. I hope that i don't have to double down, but certainly will if WTI falls to low twenties/teens range.
This is bad. But OIL typically down more percentage wise when WTI hit so hard. We are in bottom territory. Just hate being the skipper and going down with the ship by being too stubborn about riding this out. I will just watch today. Too late for me to get out. Will not add more shares though!
Mark this post! OIL finds bottom upper $7 range. Does not like being under $8, at last! Finally OIL showing resistance to falling knife. I mentally capitulated today, though have not sold any shares. My losses so great, that I might as well remain long for life. My commitment well demonstrated when I resisted reducing my holdings when OIL touched $8.20 today. I am here to stay. Long live the OIL longs!!!