bruno12

Forget $100 a Barrel - Oil Will Plummet to $30

The thing that caught my attention was using Freedom Oil and Gas as an example of "plenty of oil". This reminds me of Eden Energy, which was also going to stike it rich in Wolverine's backyard. Check out the history of Eden Energy. He could have chosen a much better example to illustrate that point. Makes me wonder what his agenda is. Is this a subtle pump for Freedom Oil and Gas ? Maybe not, because I don't see where it is publicly traded. This whole article just strikes me as the kind of pump you get from the alternative energy newsletters. I'll pass.

ETF Pick of the Week: ProShares UltraShort Oil & Gas

I'm staying away from ETN's because of the credit risk. I don't want to worry about the stability of the financial institution backing the ETN. There is enough risk trying to predict the price of oil or any other commodity.

ETF Pick of the Week: ProShares UltraShort Oil & Gas

New Up/Down Oil ETFs Open for Business
Thursday July 3, 11:10 am ET
By Tom Lydon

Tom Lydon (ETF Trends) submits:
Just as two ETFs tied to the price movements of oil reached their termination triggers and closed on June 25, two more will be entering the market space to replace them.
MacroMarkets launched MacroShares $100 Oil Up (AMEX: UOY - News) and MacroShares Oil Down (AMEX: DOY - News) yesterday. These funds are the second products from the provider.

The previous funds - MacroShares Oil Up (CDNX: UCR.V - News) and MacroShares Oil Down - had a termination trigger built in that stated if the price of oil stayed at or above $111 a barrel for three consecutive days, the funds would terminate. As we all know, oil is well above that price point now and, and the trigger was set off on April 16.

As outlined in the prospectus, the net asset value [NAV] will be returned to investors. Investors in UCR will receive the full value, while DCR investors will receive nothing.

MacroMarkets President and CEO Sam Masucci says the first two funds were a big success in their 18 months of life, gathering $1.5 billion in assets and trading 17 million shares a day at their close on June 25.

Just as their predecessors had been, UOY and DOY are paired products that track the price movements of West Texas intermediate oil. The starting price for a share is $25, representing one-quarter of the benchmark oil price. As the price rises and falls, assets are transferred back and forth dollar-for-dollar between the Up and Down trusts.

The termination trigger for the new funds is $185 a barrel.

ETF Pick of the Week: ProShares UltraShort Oil & Gas

Watch out for UOY and DOY. Their predecessors, UCR and DCR were terminated early because the price of oil stayed over a certain level for 3 days. DCR owners got wiped out.