Quote:
Originally Posted by cracher
So who else has been following oil with HOD in the last while?
More importantly, with all the knowledge in this thread, when should one take a monster long position? (and, by long, I mean the leveraged HOU - so not long at all in a temporal sense)?
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I know that this probably isn't the right thread for this, but you should be very careful with ETFs like HOU. You have to understand the math and consider that they rebalance daily. What the means is that if oil goes straight up or down for a while, you're golden (depending on what exactly you're doing). If its volatile though, you're in trouble. So if oil goes from $30 to $100 in a nice straight line, you hit a massive homerun on the right side of the trade. If it goes from $30 to $100 but with a lot of volatility on the way you could well wind-up losing money. It's not as simple to say "oil is cheap, I'll double-down here using this leveraged product".