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Thread: Oil?? Problem with USO

  1. #1

    Join Date
    Feb 2009
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    Pacific Northwest
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    Default 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


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  3. #2

    Join Date
    Feb 2009
    Location
    Pacific Northwest
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    Default Re: Oil?? Problem with USO

    Interesting follow up to the original videos:

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

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  5. #3
    alevin Guest
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    Default Re: Oil?? Problem with USO

    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

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  7. #4

    Join Date
    Jan 2009
    Location
    Upstate NY
    Posts
    142

    Default Re: Oil?? Problem with USO

    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.
    "Don't let your highs get too high and don't let your lows get too low." Bullitt’s Market Blog

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