The_Unwind
Long

Buy DRIP ! For Lower Oil and Stock Market Prices in 2019

AMEX:DRIP   DIREXION SHARES ETF TRUST S&P OIL & GAS EXP & PROD BEAR 3X (P/S)
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If you believe as I do that we have entered
a new bear market, in both the stock market and in the crude oil market
then look no further than DRIP, Direxion's 3 X Bear Oil and Gas ETF .

A long time favorite of mine, DRIP will get you 2, for the price of one,
It is a bet on lower crude oil prices,.. and... a lower stock market,.. all in one !

The price of DRIP has recently fell almost 50 % this winter
after rising almost 250 % in the fall of 2018, quite a large price swing to say the least.

This ETF is NOT for "widows and orphans" as they say,
as It is extremely volatile, and does feature large overnight price gaps daily.

However, if you see opportunity as I do when prices are suddenly reduced,
as in a bargain basement sale of very good quality merchandise,
that is here today, and gone tomorrow,
then I suggest you closely monitor DRIP.

I have been accumulating DRIP, on this pullback.
Chaikin Money Flow CMF is suggesting Accumulation, Money Entering Drip, on this pullback.

DRIP traders are some of the best and smartest out there.
They seem to always know, ahead of time, which can give you a heads up, to a impending move in both oil , and stocks.

If the stock market, and crude oil , once again open to the downside,
then owning DRIP may give you an opportunity to DOUBLE YOUR INVESTMENT,
100 % return possible, back to the highs at 26, in a very short period of time.

DRIP Last 13.68

THE_UNWIND
1/5/19
NEW YORK


Comments

I think in reality a huge glut in crude may be accumulating, despite the illusion that there is a lot of price support and prices are going higher due to production cuts.

If China is tanking together with the rest of the Far East, whilst Germany and Europe are entering recession, the demand for crude might flatten quickly. Indeed, the market may have already indicated that - which perhaps is why crude fell dramatically last month. Saudi and the other crude suppliers know demand in advance and have the orders and numbers in 2/3 months before requisite shipping dates. I know because I work as. an expat in an oil company in the Middle East. I don't have numbers myself, but future market movements are identifiable 2/3 months out.

In the circumstances, its easy for Saudi and Opec to dress up their "cuts" as market support. In reality, the drop in real demand volumes may already be much less than the window dressing of "market supporting" cuts of such volumes, so the price may diminish despite Saudi's cut in production (if that is in fact really being monitored...). Add to that Opec have lost control of pricing, whilst Opec itself is in disarray, members not necessarily following their allocated cuts and disillusioned with Saudi whilst really wanting to maintain their market shares. Non Opec members (including of course now the USA) are throwing what they can on the market (US producers in particular to meet their financing obligations).

So it may well be the case that crude could fall dramatically despite indications to the opposite.
Reply
Now this is fascinating. Going to look at the chart today
Reply
The_Unwind LucyF2492
@LucyF2492,

My own Proprietary Analysis.

Crude has long term, and big money commercial's support at the recent low of 12/24/18 low 42.36 Basis Jan.19 futures Contract

DRIP is currently in a waterfall decline back to 12.50, line in the sand support.
If you're bearish on crude, you should wait:) patiently, and buy Drip at 12.50
Reply
The_Unwind LucyF2492
@LucyF2492,

Big money is currently backing crude oil again, for a move back above $50
Reply
LucyF2492 The_Unwind
@The_Unwind, Check out USO.... looks long on long term. But needs to fall a bit in my opinion
Reply
The_Unwind LucyF2492
@LucyF2492,

The ETF's you are mentioning show familiarity.

USO just this past week, achieved a Bullish Weekly Breakout,
by Closing Above the High of the Pattern Low Bar.
.
$42.50 Crude is the Support that big money commercials has bought into here.
A break of that long term support bottom, would immediately negate any short/intermediate bullish bias in USO
Reply
Interesting. Your investment thinking is a bit like my own at the moment...

Would appreciate your thoughts: This ETF seems linked only to oil/gas, though. Last time it peaked it came off previous prices of $150 oil down to 20/30 a barrel. Now it may only drop from recent prices averaging around 50 down to probably around the same 20/30 dolla level, so could the appreciation be as much given the background movement likely smaller? Moreover, as it seems linked onlyto oil/gas, why do you think it "is a bet on lower crude oil prices,.. and... a lower stock market,.. all in one".

I'm interested in finding more about this possible trade as I do work in the oil/gas industry and think you are right on trends. I just need a bit more convincing!
Reply
something big is in the horizon
Reply
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