VelocityShares Credit Suisse 3X Long Crude ETN (UWTIF)

[sludgehound]

UWTI >$1.2B past 6 months draws swingers

Get that feeling if/when this turns it's gonna be a beastmaster just from the sheer weight initially. Course that thins out as higher buyers will bail once get even again. But this heavy inflow does offer hint of where market thinks crude will go forward.
My reasoning always was that for oil to race higher fast the overall economy needs mass thought that the machines were full out. Only then can the controlling powers figure they can jack prices since buyer can withstand the rise.
Right now the economy thought seems to be slow simmer ergo, simmer crude prices. If Fed bumps Sept, players will figure Ok someone thinks economy strong enough to take higher prices.
Article mentions ETNs getting action from swing traders, another sign of the simmer until the group think believes it's go time. Then getting a ticket on pulling out train will get super pricey. Likely know when prices start 0.35 to 0.50 moves at first and widen from there. First $1 day and party time. Or whole thing goes in dumpster as Paul Ryan would have it.
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http://www.etftrends.com/2015/09/leveraged-etfs-are-popular-plays-among-swing-traders/

For instance, the VelocityShares 3x Long Crude ETN (NYSEArca: UWTI), which tracks three times or 300% the daily performance of WTI crude, has attracted over $1.2 billion in net inflows over the past six months, according to Lipper data. UWTI now sees more action than Apple (NasdaqGS: AAPL), Bank of America (NYSE: BAC) and other prominent stock names – UWTI volume jumped over 300 million shares Monday, and volume was at around 76.1 million mid-Friday after the ETN dipped 3.2%.

While the leveraged aspect of these geared products may produce greater returns, investors are exposed to greater risks as well. Many traders have also recently picked up the products as a way to play larger swings.