View Full Version : Oil?? Problem with USO
justbizness45
04-02-2009, 04:19 AM
Info on USO, this guy makes a lot of sense. Unlike SLV or GLD, USO doesn't hold any oil reserves. Which means rising futures prices cuts USO's profits:
http://www.youtube.com/watch?v=BVrLPxjRw08&feature=related
Part 2:
http://www.youtube.com/watch?v=QKsmaykLpvE&feature=related
justbizness45
04-02-2009, 05:20 AM
Interesting follow up to the original videos:
http://www.youtube.com/watch?v=fHUoMhDc4OQ
alevin
04-02-2009, 05:52 AM
Yeah, I posted about USO behavior and characteristics awhile back over in the "everything oil" thread. why I've been studying contango before I do any more investing in single-commodity ETFs. I tried paper-trading it earlier too (see my account thread) but got nailed very quickly. Was really glad I learned about contango via paper and not real green.
http://www.etftalk.com/forum/showpost.php?p=2107&postcount=21
Bullitt
05-04-2009, 12:59 AM
Definitely not a buy and hold ETF. Sounds good on paper, but you're right, contango is going to kill anyone who chooses not to day trade this.
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