Santa ClausHBP NYMEX Oil Bull+ ETFHOU.TOTOP PICKDec 24, 2008

Will both spike when the pandemic is over? Will both spike when the pandemic is over? HOU-T is the upward moving ETF. It is also a two times ETF. The HOU-T is certainly the side to be on today. If the virus news is true then there will be a lot of pent up demand for oil. But he is not in favour of leveraging. These are intended for day traders.

Double bull oil ETF. It seems you are at the bottom end of the range in oil prices. This ETF has the usual problem with leveraged ETFs if you hold them a long time. HOU-T may not go up if oil is too volatile.

For the long-term? Do not buy this for the long-term. It is a leveraged ETF. A great vehicle for gambling, short-term trading, but none of these leveraged ETF’s should be held longer than 2-3 trading days. Even if you have the direction right, you could still lose money because of the way leasing is reset every day. This is a day trading vehicle.

With leveraged ETF’s, you don’t trade them for the long-term. You buy them for a very specific trade because you are getting double the fun. You have to remember that these funds are reset every day. Oil itself is not basing and he doesn’t think it is time to buy it. If oil does bounce, he would only hold this for 2 or 3 days.

For an 8-10 year hold? This is a leveraged Bull+ ETF on crude oil. Any of these levered ETF’s are meant to be held for a maximum of a week because of the way they reset the prices on these leveraged deals. A lot of people who held them for 6 months, even though they were on the right side of the market, kept losing money. It is because of the reset. These things are for day traders.

A doubled leveraged way to play crude oil. They are not, not, not for long term holding. Couple of weeks at a time. With trading, a high percentage of the time you are going to lose and have to sell and move on.

Leveraged Investment so you can only hold it for a short time because of rebalancing on a daily basis. Oil tends to bottom about mid February of each year and do well until the summer time. This year it is starting early. Energy stocks responded correspondingly.

Oil does well until end of September. Crude oil has gone parabolic, which is unusual. When it hits the peak, look out for the stock market. Everything is positive, don’t short yet, but watch for a move to the downside by the end of August. These vehicles work well when you are in a very strong trend.

We are getting into areas of resistance. We are at the top end of the range. If we can’t break out, it would go down. He would be a seller.

Has the daily double up/double down leveraging. It is futures based so you have the con-tango in the futures market. Not good to hold for long-term. Prefers USO-N for a month or two. You get only 1-2% erosion per month with that one.

Not a big fan of leveraged stuff because people consistently view as a long term hold. Should be no more than a week because of the way pricing is done.