Oil?? Problem with USO

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=BVrLP...eature=related

Part 2:

http://www.youtube.com/watch?v=QKsma...eature=related

Interesting follow up to the original videos:

http://www.youtube.com/watch?v=fHUoMhDc4OQ

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/showpos...7&postcount=21

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.