Buying a Tranche of Oil
I think it's time to start buying oil. We are seeing the market start to show some signs of finding support, as price has been fairly rangebound over the past week -- and even managed to include some bullish pin bars. Fundamentally, I think it's a good value buy as well, as I believe current costs are below production costs for many companies, and significant ongoing production is still needed in spite of the current supply glut we face. With that said, I think the bear market might last a bit longer, so I'm leaving the bulk of my capital available for if price falls major support at the low 30s.
This ETF, DBO, is my ETF of choice here as it tracks WTI oil over a longer-term basis (it is not just the nearest futures month contract, but a portfolio of futures month contracts spread out over the next 12 months).
See our video on choosing the right oil ETF: informedtrades.com/1911399-how-choose-oil-etf-right-you.html
This ETF, DBO, is my ETF of choice here as it tracks WTI oil over a longer-term basis (it is not just the nearest futures month contract, but a portfolio of futures month contracts spread out over the next 12 months).
See our video on choosing the right oil ETF: informedtrades.com/1911399-how-choose-oil-etf-right-you.html
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