Another ETN You Shouldn't Be Buying [View article]
Supply and demand. The bank stops supplying new shares because they are unable to keep up with excessive demand creating a premium in the market. This is when it starts to act like a stock.
Another ETN You Shouldn't Be Buying [View article]
Another important distinction is to know the differences between ETNs and ETFs. When there's a choice to be had, I will choose a similar etf over an etn. For example I trade the vix products uvxy which is an etf. It is similar to the etn tvix in that it is a twice leveraged short term vix product. The most important difference between the two is that ETFs are more regulated and are liable for deviations from their NAV. It is much less likely to experience the destructive premiums associated with more and more ETNs (which ironically was touted as a benefit when these ETNs first emerged). The other problem is that ETNs are only backed by banks, which means if the bank goes bankrupt then you are stuck with a worthless etn. Alot of these banks being European should give a trader pause for concern.
Gold Breakout Begins - Will It Continue? [View article]
@remurraymd, I piggy backed off your NUGT trade the first time you mentioned it in a comment. Glad I did as its been really lucrative so far. Are you still targeting a $12 sale or has that number increased in light of recent events?
Mark Anthony, I am following your advice which you gave on a previous article which may be best advice you have given. You said when the coal sector turns around, it is not about what price you get in at, but it will be all about what price you get out at. You said on previous bull run in 08 that you kept waiting for pullback to buy more and that never come. How can we be sure that this past rally was not just a relief rally. I guess with prices this low it doesn't matter In the long term and the answer may be to scale in. Now my only question is once rally does begin without a doubt, will you buy into rally and how high into the rally will you buy? Question goes out to all, I was not in investing world during last commodities boom of 08 and would like to hear opinions of buying into the rally since everyone has pretty much established that calling a bottom is a game of fools.
Short TVIX: The Ultimate VIX Contango Trade [View article]
Good analysis if the premium issue. Thats why i tend to stay away from ETNs. Gaz is another wayward etn with super high premiums waiting to eat into profits That's why I trade the ETFs of uvxy/svxy. I do not have to worry nearly as much about premiums eroding profits. The ability to sell options with those vehicles are also sometimes lucrative.
The Texas Natural Gas Mystery ... Solved [View article]
Paulos, living in the Pennsylvania Marcellus shale hub, we were promised many new jobs. but I have noticed that there are not as many jobs being created as promised. These gas companies just relocated their drilling rigs and workers from Texas and moved them up to Pennsylvania and now Ohio with their new shale play. It's easy to spot Texas license plates here in pa now. So if the rigs are up here drilling and not in Texas....that can only mean less production in Texas. Taking into account the incredible diminishing returns associated with fracking wells as shown by mark Anthony earlier, there might be some truth to those numbers in Texas.
The Impact Of A Looming Natural Gas Supply Problem [View article]
Mark, would you surmise that yesterdays higher than expected increase in natural gas storage is due to some power plants possibly switching back to coal because of recent rise in price or is it just due decreased energy consumption due to decent weather in northeast?
Another ETN You Shouldn't Be Buying [View article]
Another ETN You Shouldn't Be Buying [View article]
Another ETN You Shouldn't Be Buying [View article]
Gold Breakout Begins - Will It Continue? [View article]
Coal: Almost At The Bottom [View article]
Short TVIX: The Ultimate VIX Contango Trade [View article]
The Texas Natural Gas Mystery ... Solved [View article]
The Impact Of A Looming Natural Gas Supply Problem [View article]