Replies to post #2431 on VelocityShares Credit Suisse 3X Long Crude ETN (UWTIF)

[RBKissMyAs]

Thanks, but this is going to 12.80 minimum. It's a hold until then!

[Nebuchadnezzar]

I agree wit much of this

however

but I bought 2000 under $2.60 so I can wait to see it play out.

im still waiting for that $30 oil that appears to never arrive.

many people do not understand the math here...they better learn.

the worst thing is if oil traded sideways for a long period of time, but latest volatility has made UWTI and DWTI printing presess

[Spanky227]

Yeah in theory you would be correct. However in actual history this isn't how they work. As a matter of fact DWTI had no decay from June to January last year and actually had a boost in performance beyond what even a pure 3X play would have paid.

So had someone bought last summer DWTI but sold because of "decay" they would have missed out on a huge winner.

A good SA about this here: http://m.seekingalpha.com/article/2854476-how-to-buy-and-hold-leveraged-etfs-the-top-7-outperforming-3x-etfs-over-the-past-year

Also a strange but true fact is buying equal amounts of both DWTI and UWTI in June and holding till January would have made you +100%. With decay you should have lost money right? It didn't happen.

If either of these moves sideways for more than a few weeks simply step off the bus and wait for the next round.