1 I just bought the crude oil ETF UCO for a 10% position. The reason for my position is to potentially capitalize from the commodity sell off that has plagued the markets recently. I fear buying precious metals, and I have always had a liking to oil. The stats are near oversold in The PPT. I’m willing to hold this for awhile to yield a profit. However, should a bounce come, I will look to sell.
I haven’t sold any of my other positions, and this brings me to cash levels of a little more than 5%. Quite dangerous isn’t it? I could sell and take the hit now, but I’m so far down this road that I might as well wait for a bounce. Some positions may be sold for break even or a slight loss.
Another ETF to note, with great stats in The PPT, is ITB. It’s oversold and a bounce is due, if the market doesn’t roll over. I’m hoping for a bounce, as this will lift my USG shares.
The charts for both of the discussed ETFs are above. Keep in mind these are frozen intraday prices. For updated charts click here.
One Response to “Buying ETFs”
Surf
Curious as to your thoughts regarding VDE? I have had good experiences with vanguard etf’s in general and VXF in particular. For a more concentrated play STO may be worth considering. The dividend has always been useful when I misjudge my entry point.