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I’ve flipped 3 times. I look at the gaps. But if you hold long you will lose.
If you hold ERX you will lose all your money. This tracks daily.
The reason it is down is because of mainly Exxon. They were dumped on the Index. But also demand and supply for oil.
This is only a flipper. Buy on dips and sell at highs. If you can catch it on a very low point and hang tough you might get a bagger..
You can see the holdings here..
https://www.direxion.com/uploads/ERX-ERY-Fact-Sheet.pdf
Beat back down... time to take a peak again.
Why is SCO down 6%? Any guesses?
This won’t surprise me if it does...
Super! Congratulations
It sure does seem like we are about to see the biggest economic downturn in the history of the world.
I cannot imagine the S&P 500 hanging tough...
That pop on UPRO I'm thinking will be short lived.
Will the US pump another Trillion in this market?
I wonder what would happen if you short both the SCO and UCO. Same amount.. what it would look like after interest payments. Since in the long run both of these lose long.
I'm thinking the new PPP is going to make this go down... Plus it is in a Head and shoulder reversal pattern. It might be time to go back to UPRO
Me too... sold too early at 33... I had 1000 shares!
Nice uptick today...
Uhhh If you made <$200k family ($175k adj), I do believe a magical $2400 shows up..
UCO might be better one... Good luck. I bought 2K shares ERX pre market $11.35 but sold at $12.60's... not bad.. but play slots at the casino too.. when they were open.
$0 Oil Forces Canada To Shut Down Crude Production
By Irina Slav - Apr 20, 2020, 9:00 AM CDT
Oil sands
Canadian oil companies have begun shutting down steam-driven oil sands production projects as prices continue to fall, Reuters reports, noting the move could have dire long-term consequences for the production facilities.
Steam-driven oil sands production, also called steam-assisted gravity drainage, involves injecting steam into an oil sands deposit to melt the bitumen and make it flow up the well. To ensure long-term production, the temperature and pressure at such sites must be maintained at a certain level. Disruption, Reuters explains, could result in permanent damage, which would translate into a permanent loss of production.
Yet Western Canadian Select, the heavy oil benchmark of Canada, has been trading below $10 for about ten days now, with a temporary spike to $10.13 a barrel last Thursday. At the time of writing, WSC was trading at $-0.01 a barrel.
Producers are paying $2 a barrel for anyone who will just take delivery.
https://www.wsj.com/articles/why-oil-is-11-a-barrel-now-but-three-times-that-in-autumn-11587392745?
Probably received a big dollar PPP loan from Federal Daddy.... which will turn to freebie.
Mods fixed board title
Target Index
The Energy Select Sector Index (IXETR) is
provided by S&P Dow Jones Indices and
includes domestic companies from the
energy sector which includes the following
industries: oil, gas and consumable fuels;
and energy equipment and services.
They use swaps to try and achieve 2 x's that index.
This ETF typically follows oil but not always. The other day stocks were up yet oil was down. It follows energy stocks.
I have a "play" account...
a few weeks ago, I owned 100 shares of ERY. It went up $100 in one day.
These leveraged funds are like going to the casino.
I think what you did was exactly a the play.
Nice.
Has this played or continues?
10 AM... going on now.
What are you saying? Heck, just pump out some trill.. problem solved... To the sky Nasdaq... and if it looks like another drop..add a couple more trill..
Sure.. It makes sense unemployment up 6 million which then causes everyone to want to buy.. Makes perfect sense.
Russia said ready to cut production by 1.6M bbl/day
Apr. 8, 2020 2:31 PM ET|About: The United States Oil ETF, LP (USO)|By: Carl Surran, SA News Editor
Crude oil surges suddenly toward the end of the day's trading, as RBC reports Russia is ready to cut production by ~1.6M bbl/day, citing an energy ministry source.
Somebody just bought a boat load at 2:17 pm and ran it up to $2.40.. lol
Nice one baggier if you bought on the 24th...
There is an old saying...
Don't fight the Feds
When interest rates are being lowered... buy
When interest rates are being increased... go conservative.
It only makes sense we shut down the world costing 1/4 GDP and the S&P 500 will go bull... Right?
Some must think it will V pretty quick.
https://www.morningstar.com/articles/976107/coronavirus-update-long-term-economic-impact-forecast-to-be-less-than-2008-recession
Jim is wrong... a lot.
I'm thinking this will get back to $40...
Volatility causes the objectives not to be achieved..
Funds may incur higher costs and may be forced to purchase and sell securities at market prices that do not represent their fair value or that result in differences between the price a Fund receives for the security or the value of the swap exposure and the market closing price of the security or the swap exposure. Under such circumstances, a Fund may have difficulty achieving its investment objective for one or more trading days;
Not anymore.. it is now a 2X..
"Direxion will ratchet the Direxion Daily Energy Bull 3X Shares (NYSE: ERX) and the Direxion Daily Energy Bear 3X Shares (NYSE: ERY) down to 2x status."
https://finance.yahoo.com/news/direxion-accelerating-shifts-10-etfs-205414330.html
http://www.direxion.com/leveraged-inverse-etfs?filter=dailybullbear2x
The moved that date.. it was yesterday they moved to 2x
I'm keeping my powder dry.. until I see the virus situation improve.
I do believe oil is at the bottom... We have a lot of factors:
- Demand.. how long will it be before people can go back to work
- Saudi and Russia conflict (agreement might pop it)
- Trump buying (keeps thing artificially high)
- Trump offering storage (keeps thing artificially high)
- The smaller producers debt
- Producers cutting output
When I start.. which might be in another 30 days.. I will enter little by little every month.. with no fear. when this pops... IMO, it most certainly will be a 1-2 bagger. It's too bad it's only a 2x and not 3x's.. but Direxion might have gotten smashed on this one with losses due to that wild ass swing we had.
ERX tends to follow oil but it is skewed right now...
Index Top Ten Holdings %
Exxon 22.38
Chevron Texaco 20.36
EOG Resources 4.63
ConocoPhillips 4.50
Schlumberger 4.48
Phillips 66 4.28
Kinder Morgan 3.91
Marathon Petroleum 3.71
Valero Energy 3.65
Occidental U 3.49
Index Sector Weightings %
Oil, Gas & Consumable Fuels 89.66
Energy Equipment & Services 10.34
http://www.direxion.com/products/direxion-daily-energy-bull-3x-etf
Saudi ready to dump... be careful this week
https://www.wsj.com/articles/oil-price-war-batters-poorer-opec-members-as-coronavirus-looms-11585647001?emailToken=734fc5d54c5245fccb29f96bd3e0090c2J3OvEXv/ik5CJt42fNO6mgfHWekKkd9SG7Efo5fiiHO9/CV2l3Fu9SBjzvqRVFMeW+5yX6t+jE4uTALhYb3D0uNpYGteoG2XObFBPCs5ot1NRfvMUxmZq46Zfdipis+&reflink=article_copyURL_share
This will keep oil prices from dropping for awhile...
https://www.energy.gov/articles/department-energy-executes-direction-president-trump-announces-solicitation-purchase-crude
We are in a faux market situation right now.
A few things to keep in mind.
Demand for Oil is going to be low...
You can see by the storage facilities are filling up. This will mean continued pressure on supply... stop supplying...
Trump is buying the oil and placing in the large salt domes.. This is really not market driven but.. government driven.
A US rep is meeting with OPEC.. they want oil producers to stop pumping. They want Russia and OPEC to cut.. this will help lower supply.. lower supply equals pressure to raise price.