Congrats on your 1st post, Liz. The technical's look terrible on DWTI. If it was going to bounce it should have done so today during a rally .I will get back to you after I check the fundamentals
3X etfs like DWTI and UWTI are the crack cocaine of the stock market! These are short term holds and should be traded, never held for any long period of time. Think of these things as gambling, and unless you are a very good trader, odds are there will be pain somewhere along the line. Check out this move in just the past few weeks:
It appears that DWTI's trading has been halted. I got the following when I tried to research it. All you can do now is wait and see why it was halted.
You funny guy. AKA Stockjockey Liz, I still haven't seen any news on the halt. I suggest calling your broker and see what they say
It is hard to say, if we knew what next day will bring for oil, we would all be filthy rich. I personally play with UWTI & DWTI once in a while just for the heck of it but never played for substantial amounts. As Gil said, these stocks are never for long term trading as you will lose a lot to decay. For short term, if you think on Sunday in Doha Meeting, Saudi's will again be the problem child and disagree with production cut, your DWTI will be flying high next week. UWTI has been rallying last few days thanks to the rumors that they will finally agree on production cuts. But this is not the first time these rumors claimed the same thing. So just know your risks and decide according to that. Here is a link that you can read to get a better idea. http://www.cnbc.com/2016/04/12/opecs-oil-meeting-in-doha-could-be-at-risk.html ------------------------------- Personally I might end up buying both UWTI and DWTI at the same time on Friday. It might sound silly but in case of a consistent strong movement you can win either way. Here is how it would work: Let's assume they couldnt agree, and that would start a down trend for oil. I bought $100 for each DWTI and UWTI: Day 1 (changed 10%) DWTI: 110 UWTI: 90 Day 2 ( changed 10%) DWTI: 121 UWTI: 81 Day 3 (changed 5%) DWTI: 127 (gain $27) UWTI: 77 (loss $23) net gain $4 (overall 2% gain with very limited/hedged risk) if they agree to cut it then UWTI would be the profit maker. But like I said this would only work with strong/consistent trends. (i.e: Feb 24th through March 9) Usually important events like Sunday's meeting tend to be a good trend starters. Let me know what you guys think
I am a newbie to the stocks which is why I am still trying to figure out. Thanks for the information Tiptopptrader, Gil Oren, DoveJohns.
Another reason to not look for the cause(s) of oils rise. Oil will stop going up when people quit buying it.
$DWTI red candles return , will we see a huge build today at 4:30 pm based on false reporting last week to drive up oil to prop up market ?
