HGU HOU... New Money...
Well I'm not holding nearly as much as mrktneverlies... but I'm getting up there.
Will buy another 5000 under $5... 4.80 4.60 4.40 4.20 etc.
I have no idea why I didn't buy HXD today... I knew this was happening and yet I thought it was too risky, that HXU and 10.80 down to 10.50 was a better buy.. I guess we will see the rest of this week. I am not committed to the bull, I am just expecting a Bear rally... hope I'm not wrong...
I like HOU at around $4.50 although new oil target revisions calling for $45 are officially on the air waves today. It's almost like if they start talking about it then it becomes a self-fulfilling prophecy. I guess if I say oil "COULD HIT $30" and it doesn't, there is no shame in that. But if it does, I am then the new guru on oil forecasting. Maybe that's all these guys are doing. Although cheaper oil in a recession does make logical sense.
So POO will probably return to $80 or $90 once there is an economy in position that needs oil... I'm worried that we are currently in an economy that doesn't care what oil trades at because it can't afford it, or doesn't need it, at any price. That would let oil slide down as low as $20 according to one economist.
We need to be able to face these possible paths and come up with a reason that we don't believe that will happen. Ot trade it accordingly if it does. HOD still has legs.
I'm not convinced we are at the bottom of oil yet. I'm not in a hurry to buy and will revise $4.50 if we get there too quickly...
But I am convinced Gold will eventually be a safe haven once we are out of deflation. Right now I think we are riding the support of speculators who want to be in the path when gold follows that path... but this churn could go on for months...
I'm fine with that because we can make money on the flip.
mrktneverlies is accumulating a huge position. I hope so he can flip off 15,000 of those 25,000 shares on the way up... Kaaaa Chinggg !!! and ride the waves - but all the while holding a nice strong 10,000 shares, which eventually he will have paid for just on the surfing fees he will earn going up and down and up and down. This will also wind up paying for the decay we experience in ETF value over time and volatility...
This is my strategy albeit less flamboyant... I will grab another 5000 and flip the 5000 into high $5's or early $6's so I can buy them back at these levels if we drop. If we don't, I still own 10 or 15 K shares on the ride up...
Once we get airborne I will start using the extras to trade around in and make Jack Daniels Single Barrel money...
But I don't think this is a no brainer... Some of the reading I'm doing says that gold could still lose it's shine (LOL) over the near term as being nothing more than just a heavy metal that hurts your foot if you drop it. That it could take as long as 18 months before inflation rears its ugly head....
Just saying is all...
When is the US $ going to be done ???