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Anyone ever buy oil futures?

Joined
10 July 2007
Messages
1,248
Location
Pebble Beach
Looking for some input here. I would like to short oil futures - any thoughts?
 
You're probably too late to join the party. The bubble burst on the Tech Stock, than the bubble burst on the housing market. The oil future will probably be the next. When you can buy "future" for 5 cents on a dollar... Not a good sign.
 
You're probably too late to join the party. The bubble burst on the Tech Stock, than the bubble burst on the housing market. The oil future will probably be the next. When you can buy "future" for 5 cents on a dollar... Not a good sign.

That's probably why he wants to short them.

Being highly leveraged while trading on fundamentals is very risky, no? The market can stay irrational longer than you can stay solvent. Consider buying short ETFs instead, such as DDG or DUG. Same play, manageable risk.
 
That's probably why he wants to short them.

Being highly leveraged while trading on fundamentals is very risky, no? The market can stay irrational longer than you can stay solvent. Consider buying short ETFs instead, such as DDG or DUG. Same play, manageable risk.

this is a way safer way to play oil, but I too think you are too late. Lots of news out this weekend. Next week should be an up week for the markets and a down week for oil but most of it will come in monday morning.
 
Just heard on the news that Saudi Arabia is thinking about pumping extra half a million barrels day to meet the new demand, that will put the oil output to the heighest ever for that country. Perhaps others will follow. Maybe they know some thing we don't know.. Maybe they don't want the bubble to burst but rather have it stay at the current high price.
 
There has been a consistent pattern of big money buying oil on dips. Besides that, it is absolutely unpredictable if there will be a world event that shoots oil in to the stratosphere. One word of 'war' or 'terrorist attack' on or by the right country and you'll wake up to see you about 30-50$ on the wrong side. Not a good risk vs reward situation. Go DUG or if you really know what you are doing DCR [or alter ego]. I lost some $$ on DCR because if you are early you are still wrong. I'd be up 30% if I would have held on but I stopped out down 4%.
 
1st rule of trading...

DONT SELL TOPS
DONT BUY BOTTOMS

This sounds risky. I've traded crude before, but i wouldn't even think of trying to short at these levels. That market is going ape shit.

If anything, there is a ultrashort etf for crude i think? That would be a less risky way to put on your position with less leverage.
 
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