Yes. Trading has been unusual and I am sure Barron's article is nearly accurate. I actually got completely out of my position for a day, for margin call reasons, then jumped back in at much lower price today. As price went lower, I doubled my position, and now happy with my holdings.
Yes OIL still has a premium despite big drop today, but will never reach the $3 handle.
The unusual trading is a signal of bottom in oil market and hedge fund managers are going to rush to get in as soon as they are convinced price of crude oil headed higher, like today.
OIL trades hand in hand with USO. So, OIL may stay low today, but not far from USO now, if compare year long chart patterns.
Once the weak hands are flushed out, easy double. There will be some BIG up days going forward. Don't get caught sitting on sideline with pile of cash while those rally's defy gravity. Very odd movement in OIL over the week. 13% down makes no sense. Let the day traders do their thing. I will take a nap, and just check where closes at 4 pm. I will be long next week, and next month and next year, so today, though strange, will not sway me. Except to buy more, which I did!
Traders buying. Likely bottom in for OIL. Wednesday likely bottom for market in general too. Got the way overdue correction. Now the Bulls are back. Unless the Fed/Yellen make bad decisions
OIL, the etf can go infinitely lower. Will likely reverse split before sub $2 range. WTI oil will never go to zero because no one will spend money pumping oil if zero potential for profit. The rigs will start dropping like flies snorting "Raid" soon. The Amazon model won't work indefinitely for the oil patch. I would be happy to see crude oil go below $25. Will not likely see that again in my lifetime. I will surely double my holdings at that time. And, if we hit the teens, I will double up my holdings in OIL, again!
The Market should turn around this week and going forward. The volatility has been absurd, but should abate as earnings take center stage. Let us hope for some solid earnings beats. I am past the point of panic. I survived Fridays sell off by buying puts during Thursdays dead cat bounce. I am nearly neutral with my positions now, so a market sell off, or gap higher on Tuesday won't hurt me. But, the moves that I make after the market opens will determine how I make out.
I believe at this point, that the bears are ready for hibernation. It sure would be nice if the economic leaders of our nation would pay a little attention to what is going on with markets right now. Most retirement plans are made up of mutual fund securities that are tanking. We are in a snails pace recovery and yet wealth effect is getting spanked with market sinking. Housing gains are better, but still weak from historical standpoint. Deflation fears are out there, yet we have a fed that is insistent on raising rates and doing it gradually over years. This punishes those nearing retirement as market volatility will continue as long as fed remains in hawkish mode, that is raising or having the markets fear raising of rates for next several years.
I do not wish for millions of potential retires end up losing there dreams of retiring, their homes, their lifes savings just because Janet Yellen has to prove that she sticks to her word of raising rates. She should focus on what the market is telling her rather than simply staying focused on what she has told us, and insisting on keeping her word. I could care less about her pride, she and the fed need to do what is best for our and the worlds economy. Recall, its a global market now. We cannot make decisions just based on how we are doing as a nation. We must take others into consideration.
If the entire world is in fear of deflation, why would you raise rates just because US is recovering at a snails pace. AND THERE IS NO INFLATION!
Very odd! My thought was trader activity with a huge short position getting squeezed. I thought about buying protective puts after that move, but price so low, figure can't go but so much lower. Was a nice way to end an awful week of trading stocks and options.
Eyecandy, great to see you are still in the game! I look at it this way, low oil prices, I save a little bit every week when fill the gas tank. My OIL shares aren't going anywhere. Hold and gradually add to positions as shares drift lower, and just wait for the big event. At some point, China will turn around. Our economy will heat up, and Middle east turmoil never completely goes away. Just be patient!
I was wishing that I had never put a dime in the market, just a few days ago. And now, I am kicking myself for not buying on the dip! The best way to invest is dollar cost averaging and over the long term.
Sitting on sideline, you will quickly learn, hurts nearly just as much if market or stock goes up while you sit, as does being in market when market dips.
We (the market in general) are likely going higher from here. Fed must see strength in economy if raising rates despite rest of world lowering. China economy may rebound this year (will be huge boost to market). CIM surged today, so I'm happy. Will dip, as usual, ex div. Hopefully will not crash 2016, or 2017. Hopefully CIM will trend higher after fed more neutral regarding rate hikes.
If only the fed would listen to me.
Raise rate 1/2 rather than a quarter, and be done. Suggest will reassess need for fuurther rate hike only if clearly signs of inflation on the radar.
Any news? Because of pending fed rate hike? I suppose many are only now believing that the fed will certainly raise rates next week. Can't fight the fed.
May be trouble ahead for CIM, for next 2 years. I will sit on what I have, and maybe start adding to my positions a year and a half from now, if fed rate hikes seem about over.
I am glad that I reduced my holdings from mid summer levels. I would be well in the green if not for OIL and CIM in my portfolio. But, they are the dogs that will some day add a little juice to my net worth!
But, what did the market in general do in that time frame? Also, much of decline in stock price early in year likely result of anticipation of interest rate hike. Now that that is baked in price, I would doubt that a similar slide in PPS for 2016, unless interest rate hikes per fed more aggressive and for longer duration than anticipated.
The Market goes up and down. Today was down, and this might well be a down year for overall market. Sometimes we have years like this. Over the long run, the market trends higher. The only panic in the market, are the weak hands held by those who panic. They tend to jump out right before big market rally's and get back in when rally nearly over.
The strong hands use market selloffs to further strengthen their hands, and occasionally take profits when market is surging higher.
Listen to what W. Buffett says whenever market sells off. He gets his shopping bag out, and hunts for basement bargain deals. I am sure he still is well positioned in BOA, recall him getting in around $5/share.