Wait five minutes. ETFs that use futures - like USO - are being driven to 0 by front running, as others know they have to roll to later months and Cushing physical storage evaporates, so spreads cannot be arbitraged. USO holds something like 25% of all long June positions.
The number of people trying to pile into this thing exploded by a factor of 5 right as the bottom was dropping out of the futures market. They were all bottom fishing and they're getting absolutely slaughtered.
Yep, that's why I decided to wait. I have some cash left over from rebalancing our portfolio, and I left it parked until I saw an opportunity. This isn't it.
Wait five minutes. ETFs that use futures - like USO - are being driven to 0 by front running, as others know they have to roll to later months and Cushing physical storage evaporates, so spreads cannot be arbitraged. USO holds something like 25% of all long June positions.
The number of people trying to pile into this thing exploded by a factor of 5 right as the bottom was dropping out of the futures market. They were all bottom fishing and they're getting absolutely slaughtered.
Yep, that's why I decided to wait. I have some cash left over from rebalancing our portfolio, and I left it parked until I saw an opportunity. This isn't it.