DXO - Powershares Db Crude

[BadThad]

Fairly new ETF:

The investment seeks to track the price and yield performance, before fees and expenses, 200% of the daily return of the Deutsche Bank Liquid Commodity index - Optimum Yield Oil Excess Return. The fund allows investors to take a leveraged view on the performance of crude oil. The index is a rules-based index composed of futures contracts on light sweet crude oil (WTI) and is intended to reflect the performance of crude oil.

DXO - POWERSHARES DB CRUDE - Google Finance

Current PPS: $3.11

Note: I bought into this ETF today. I think oil has bottomed and if it hasn't, I feel it won't go much lower. These shares are so cheap today, I think it's a great deal. When oil comes back, it's going to do so with a vengence IMO.

[thegreatgate]

DXO was worth over $25/share when oil was over $125, nice buy.

[BadThad]

Real good, bought at 3.11 this morning and now it's 3.30!

[Evil-Eye]

Originally Posted by BadThad

Real good, bought at 3.11 this morning and now it's 3.30!

If OPEC cuts you should be in a good spot. Of course I saw last week that the third most active put was Feb 09 $25 Oil.

The Senate just stalled the Auto deal. Get ready to buy more stuff real cheap.

[BadThad]

Originally Posted by Evil-Eye

If OPEC cuts you should be in a good spot. Of course I saw last week that the third most active put was Feb 09 $25 Oil.

The Senate just stalled the Auto deal. Get ready to buy more stuff real cheap.

Not worried, I only bought 500 shares and I'm very confident oil will be back at some point.

[Rich1]

Originally Posted by BadThad

Not worried, I only bought 500 shares and I'm very confident oil will be back at some point.

I bought a little DXO a couple of weeks ago, and I'm underwater.
But I agree with you, oil can't stay this low for long. Even with the diminished demand due to the global economy, industry and transportation still need oil.
And OPEC will be cutting production soon.

[BadThad]

Time is our friend with this ETF:

NEW YORK (MarketWatch) -- Oil futures rallied 6% Monday, boosted by expectations that the OPEC oil cartel will agree on a substantial production cut at its meeting later this week. Crude oil for January delivery rose $2.76, or 6%, to $49.03 a barrel in electronic trading on Globex. "We are expecting cuts of around 2 million barrels, as OPEC needs to show their commitment to bringing markets back in equilibrium and prevent a supply glut," said Nimit Khamar, an analyst at Sucden Financial, in a note. "In our opinion, anything less than 2 million barrels may not be enough to calm markets and prevent prices falling back towards recent lows."

[BadThad]

Added to my position today when it dipped below $3. I was surprized to see it go down after OPEC agreed to futher cut production. This oil down bubble is going to burst and oil is going to go gangbusters high. With Obama and the anti-drilling democrats running the house.....WE ARE IN FOR A HUGE SHOCK VERY SOON. Mark my words, get ready for $5+/gallon gasoline people.

IMO, this is a great time to build a position in this ETF! Do it now while oil is low or I'll be the only one posting dancing banana's in a few months. LOL

[BadThad]

Down to $2.72, so what? ....I added more! LOL

[thegreatgate]

I was bored so I came up with some random dates of DXO (200%) and its inverse; DTO (-200%) since oils high in July to Friday's low of under $35 a barrel.

Recent prices of DTO (short oil -200%):
July 14th: $21.69 (near record low of $20.70)
Sept 8th: $38
Oct. 10th: $56.50
Oct. 24th: $70.51
Nov. 6th: $81.30
Nov. 19th: $97.65
Dec. 2nd: $120.43
Friday's close: $142.20 (near record high)

Same dates, take a look at DXO (200%):
July 14th: $28.80 (near record high)
Sept 8th: $15.89
Oct. 10th: $8.90
Oct. 24th: $4.50
Nov. 6th: $4.87
Nov. 19th: $3.52
Dec. 2nd: $3.14
Friday's close: $2.63 (near record low of $2.53)

Now if oil gets back to $150 a barrel, DTO should be back down to $20 and DXO should be close to $30 again!