PowerShares DB Crude Oil DXO (DXO)

[truthseeker2014]

No Doubt. Real cheap!

[xero90]

I bet 20+

[margoe]

I think PPWE is cheap and could be .70 this 1/4 !

[stockmarketgod]

well i bought into other etf's like UYG URE etc...

and although they are not oil and gas and are of different sectors...I did buy them all at the same time... and they basically traded along the same lines as DXO...

those guys are in the $6.00 ranges.. now

[strongtower]

yeah, 4.35 is not bad. wonder what dxo would be worth today since the dollar has been pounded for 7 days straight now.

[stockmarketgod]

thanks for the reply... well atleast we got $4.35 per share for our time...

[strongtower]

DXO was pulled. no more trading plus oil never got over 80 whic would of pushed this over 5.00

[stockmarketgod]

whats up witht his etf...

seems like it never wants to go above 5 bucks...

bought in $10000 worth when it was at $2.5 starting to get tired of waiting

[*~1Best~*]

Deutsche Bank, one of the largest issuers of commodity ETFs, has announced that it will liquidate its PowerShares DB Crude Oil Double Long Exchange Traded Notes (DXO), noting in a press release that “limitations imposed by the exchange on which Deutsche Bank manages the exposure of the Notes have resulted in a ‘regulatory event’…which has caused Deutsche Bank to redeem the notes.”

As part of the winding down process, within the next two weeks, DXO investors will receive the cash equivalent of the net asset value of their holdings in the ETN. As Morningstar’s Scott Burns notes, it is important to note that investors will be receiving the NAV of the note assets, rather than the market value. DXO, like other commodity exchange-traded products, has stopped issuing new shares in recent weeks, resulting in shares of the fund trading at a premium to NAV. “So if you bought this fund at a premium, you are out of luck unless you can sell it at the same premium,” notes Burns. Burns suggests that investors sell their holdings in DXO as soon as possible, but notes that most of DXO’s premium evaporated shortly after the announcement. In an extreme example of supply/demand imbalance for commodity funds, the U.S. Natural Gas was recently trading as high as 20% above its net asset value.

So what sunk DXO?

The fact that the Commodities Futures Trading Commission (CFTC) is expected to place position limits on commodity ETPs later this year certainly didn’t help. The fear in the ETF industry is that many funds are already over the position limits that will ultimately be imposed, and that such funds will be forced to liquidate a portion of their holdings to come into compliance

http://etfdb.com/2009/crude-oil-etf-shuts-its-doors/

[xero90]

Oh well.

[wolftraplight]

Wow just looked at ung's 5 year chart

[wolftraplight]

I'm not real familiar with any other oil stocks i've been watching uso for awhile

[ks7777]

i sold out several weeks ago around the $5 mark-(in at $1.75)--what is everyone going to next???? heard that UNG (natural gas) could be the next big move---currently it is about $9.15---looking for a good move into winter-----Natural gas can't stay down at this levels for loooong---thoughts???? tia

[wolftraplight]

Deutsche Bank expects to provide notice of this redemption on September 9, 2009. The repurchase value of the Notes will be determined as of the date notice is given. Payment of the repurchase value of the Notes will be made on the third business day following the date of notice. Daily creations of DXO will remain suspended. Daily repurchases at the option of investors will be accepted in the normal manner up to and including September 9.*

[wolftraplight]

DXO will be liquidated at net asset value on September 9.

[strongtower]

I don't know but it doesn't sound good. maybe somebody else can answer this. I just received the news through a pm

[wolftraplight]

Redeem for ?

[strongtower]

Deutsche Bank To Redeem All Shares Of Leveraged Oil ETN

By Ian Salisbury, Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Political pressure to reign in energy "speculators" appears to have claimed its first victim in the ETF industry.

On Tuesday Deutsche Bank said it will redeem all shares of PowerShares DB Crude Oil Double Long Exchange Traded Note (DXO), an ETF-like security that helps investor double bets on the price of oil.

Deutsche Bank had already stopped issuing new shares for the exchange-traded note, prompting existing shares to trade at a steep premium. The move appears to be the first time calls to curb speculation in the energy markets has prompted a fund firm to close a product.

-By Ian Salisbury, Dow Jones Newswires; 212-416-2241; ian.salisbury@ dowjones.com

[strongtower]

it depends if the dollar will continue to stengthen. right now it is stuck where it's at but huge forex news comes out in 1.5 hours so we will see if it continues or reverses which will force DXO higher or lower

[stocky101]

Thursday was the last up day, all down hill from here

[strongtower]

Fibonacci Analysis of Gold and Crude Oil
http://broadcast.ino.com/education/fibonacci83/

[strongtower]

no not even close to it

[trade2much]

strong yep that is true and for the 40% balance of my shares that should work fine, imo short term or longer term, oil is not going back to where we originally got in this.

[strongtower]

yeah also we didn't expect the dollar to get shorted .20 either in that time. When we first got in the dollar was around .75 to the euro now it is .44. When the dollar goes down oil goes up

[trade2much]

Strong: oil is above the range we projected in late spring of $60-70 p/b, and largely that was why I reduced my position it hit the target, but the balance can still tell a nice story. lol

[strongtower]

yep but I am wondering if this will have a down day. the dollar has been shorted for a couple of days but today might be a reversal. time will tell. but the retrace is only a few pennies I will add.

[trade2much]

Strong: that seems like a very viable way to look at it.

I had traded it since the beginning of the year a few times but currently I hold about 40% of what I used to, due to a liquidation at 4.7. I covered my total share costs+ on this last trade and the remaining profit is just riding as shares, previously.

This one has been good to us for sure and longer term it likely will continue to be as demand grows and supply shrinks.

[strongtower]

I see DXO getting higher if the dollar continues to get shorted but it will soon turn, maybe today but should end of this week

[trade2much]

Strong it sure is getting closer all the time.

[xero90]

We're going to see 5 here soon. And then 6+.

[euterpe1]

Another view on long oil.

http://stockcharts.com/h-sc/ui?s=$WTIC&p=W&yr=2&mn=6&dy=0&id=p42138233212

Target $85-88.

[mrnatural]

60 min. chart shows an inverted head&shoulders...implied target = 6.00 (scroll down for chart)

[strongtower]

predictors say E/U is headed to 1.45 so if that happens then expect DXO to break 5.00

[stocky101]

I feel the same, I'm also going for the down arrow, US at Capacity on Storage

[strongtower]

DXO is up because of the short on the dollar right now. Right now it is head and shoulders on E/U. Techs say she is about to be shorted like crazy BUT the market keeps going long. E/U has a quadruple top right now. Could blow up or down. Nobody knows. I say down. IMO

[strongtower]

yeah I see your point. What worries me more then anything is another terrorist attack even if it is not near on a 9/11 scale. We know it is being plotted right now. If it happens again right now while we're weak we will be crushed.

[trade2much]

Strong that is true, but China is sinking only to a 9% GDP growth this year and that is POS, not Neg/breakeven like the US, India is coming on as well.

Imo Our service economy which is based mostly on consumer confidence, and a huge negative balance of trade, is worse off,(negative #). Coupled with BKed further planned massive spending increases, and we have a real longer term problem, if the current BS is enacted especially.

[strongtower]

yeah but you have to think that the world is not that much in better shape then we are. When we go down everyone else does also. Right now Europe is stronger but not that much.

[trade2much]

Strong but has the policy of weak Dollar changed? Imo with all the massively increased/increasing US money supply, and a negative GDP(slowly increasing up), inflation at .007% last month, coupled with a very sluggish recovery that does not spell strong dollar does it?

[strongtower]

the reason why DXO fell so hard was E/U was tradng above 1.42 and then got shorted all the way down to 1.38's which killed DXO. Right now E/U is going up but the long run has no merrit so I don't know how long it can hold it.

[trade2much]

Strong yes I can see that inverse relationship, as the dollar is stronger the ppb decreases a bit, all other things being equal.

[strongtower]

we will dip but not right now with the dollar being shorted to death. I give it 1-3 more days before it goes up again IMO. When it goes up DXO goes down.

[trade2much]

My guess is we may dip a little but not much and maybe $55 pb near term if even that, but then be in the 60 -70 range a bit longer then toward 4th quarter edge higher 70-80, as the new numbers further support a very sluggish recovery and MFG inventories which have been depleted, based on soft demand and cost cutting will need to built a bit later in the year, hence requiring more oil.


What say you Strong?

[C C]

Oil with a 2.8 million barrel drop in U.S. crude stocks ... a weakening U.S. dollar and news on strong GDP growth in China provided the basis for a rebound in international oil prices."

The Energy Information Administration said Wednesday that the country's supply of crude oil dropped more than expected last week, falling by 2.8 million barrels.

Inventories have dropped 13.2 million barrels during the last four weeks.


http://seattletimes.nwsource.com/html/businesstechnology/2009480154_apoilprices.html


cha-ching

[C C]

DXO.....chart....annotated





c c

[strongtower]

crude is currently up around 1.38% and DXO is up 2.89% so it's right

[xero90]

yesterday may have been bottom

[$to©k_Pi©ker™]

So, crude is up 1.29 today, but DXO is only up 6 cent pre-market?

[BradL45]

I'm also just refilling from the $4 range, more buys set lower as well. Filling for the next cycle, and longer term.

:)

[strongtower]

I bailed in the high 4 dollar range but if it keeps falling I might go another round. If the dollar keeps getting strong then expect another drop in oil though.