Comments on: USO revisted http://thetradingdigest.com/blog/2007/04/15/uso-revisted/ Tue, 06 Jan 2009 14:27:05 +0000 http://wordpress.org/?v=2.7 hourly 1 By: John http://thetradingdigest.com/blog/2007/04/15/uso-revisted/comment-page-1/#comment-146 John Mon, 16 Apr 2007 13:57:05 +0000 http://thetradingdigest.com/blog/2007/04/15/uso-revisted/#comment-146 BriG, Thanks for the link, I've read a couple similar articles on USO versus price of oil before. If you notice, the article actually says that the reason for the disconnect between USO and the "price of oil" is because of rolling the futures. If I was purchasing the futures directly, I'd have the exact same issue, having to roll from one contract to the next which would have a higher price. For example, right now the May contract is 63.425, the June contract is 66.075 and the July contract is 67.525. So these issues exists whether you trade the ETF or the futures directly. Hope this explanation helps. BriG,

Thanks for the link, I’ve read a couple similar articles on USO versus price of oil before. If you notice, the article actually says that the reason for the disconnect between USO and the “price of oil” is because of rolling the futures. If I was purchasing the futures directly, I’d have the exact same issue, having to roll from one contract to the next which would have a higher price. For example, right now the May contract is 63.425, the June contract is 66.075 and the July contract is 67.525. So these issues exists whether you trade the ETF or the futures directly. Hope this explanation helps.

]]> By: Dave http://thetradingdigest.com/blog/2007/04/15/uso-revisted/comment-page-1/#comment-144 Dave Mon, 16 Apr 2007 02:13:26 +0000 http://thetradingdigest.com/blog/2007/04/15/uso-revisted/#comment-144 Brig I will speak for John on this. It's entirely mechanical. "Leary" means nothing in mechanical models. It is trend following script for Wealth-lab that has tested very well on indexes. As with any trend follower , the percentage winners are low and winners are much larger than losers. It's the same as my swing trading script - everyone wants to short when I am going long. Yet year after year that trading system has had phenomenal performance. Brig I will speak for John on this. It’s entirely mechanical. “Leary” means nothing in mechanical models. It
is trend following script for Wealth-lab that has tested very well on indexes. As with any trend follower , the percentage winners are low and winners are much larger than losers.
It’s the same as my swing trading script - everyone wants to short when I am going long. Yet year after year that trading system has had phenomenal performance.

]]> By: BriG http://thetradingdigest.com/blog/2007/04/15/uso-revisted/comment-page-1/#comment-143 BriG Mon, 16 Apr 2007 00:20:58 +0000 http://thetradingdigest.com/blog/2007/04/15/uso-revisted/#comment-143 I'd be a bit leary about holding on to USO for any length of time. http://www.forbes.com/options/feeds/options/2007/04/10/options17045.html Have you considered buying Oil futures direct? or are the contract sizes too large? I have no idea. I’d be a bit leary about holding on to USO for any length of time.

http://www.forbes.com/options/feeds/options/2007/04/10/options17045.html

Have you considered buying Oil futures direct? or are the contract sizes too large? I have no idea.

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