RE:RE:Please Help Clarify!gatman wrote: Seriously,
It will re-open...this is a time out to allow the price of the commodity to (hopefully) catch up with the ETF price.no new shares are being issued ..a lot of people caught offside here..emotions running high.....few expected this severe of a crash..so trading was crazy
Looking at the charts, there is a chance that yesterday was the panic low....not saying that oil will go to 30 dollars, but gradually recover depending on what OPEC does and other factors.
we'll know soon enoiugh
BTW your shares are worth what the market will pay for them. that is often far away from any calculated or imputed value
Gatman, good post.
One thing, the shares are most definitly influenced by trading bias each day, but the fund uses the subscription money to issue more shares and re-balance away as much of the bias as it can.
Thus creating a vehicle that tracks 2X it current contracts.
However, with no new subscription funds, re-balancing will be an issue, and we might see more of what happen today. Price doesn't match NAV, they halt, and just re-set the price accordingly...