CBH1926 Posted April 20, 2020 Share Posted April 20, 2020 On 4/18/2020 at 10:29 PM, AriGold2.0 said: I have around $40,000 I will be investing in the near future. Trying to maximize my profits (aren't we all) and will be cashing out in 2 years to buy another property. Would love to hear some thoughts ?! @NucksPatsFan @CBH1926 @Boudrias @Warhippy To maximize profits you would have to invest in “boom or bust” type of stocks. Right now airlines, some oil stocks and casino/hotels cruise lines fit in that category. Majority of high quality stocks are priced right or overpriced so for that I would wait. For the other category there are some “dogs” that are worth looking at. Link to comment Share on other sites More sharing options...
AriGold2.0 Posted April 20, 2020 Share Posted April 20, 2020 1 hour ago, CBH1926 said: To maximize profits you would have to invest in “boom or bust” type of stocks. Right now airlines, some oil stocks and casino/hotels cruise lines fit in that category. Majority of high quality stocks are priced right or overpriced so for that I would wait. For the other category there are some “dogs” that are worth looking at. Well, woof woof.. What are you thinking ? 1 Link to comment Share on other sites More sharing options...
CBH1926 Posted April 20, 2020 Share Posted April 20, 2020 11 minutes ago, AriGold2.0 said: Well, woof woof.. What are you thinking ? I would consider wynn, lvs, mmp, luv, dal,dri, rcl, ccl, ttl. Recently I bought couple of those, last being Southwest Airlines. Cruise lines are risky but payoff could be great, rcl was at $135 not too long ago, now it’s trading at $35. Lyft and uber are trading at a discount, again risky with covid 19. I made money selling ADPT and SPCE stocks this year but both have been very volatile. Link to comment Share on other sites More sharing options...
HI5 Posted April 20, 2020 Share Posted April 20, 2020 Western Canadian Select at -$1.09, but Canadian Natural Resources, Cenovus and Suncor have been teetering in the green today. How does this make sense? Link to comment Share on other sites More sharing options...
Duodenum Posted April 20, 2020 Share Posted April 20, 2020 Timed Corus really well today, in at 2.66, out at 2.93, love it. 1 Link to comment Share on other sites More sharing options...
inane Posted April 20, 2020 Share Posted April 20, 2020 5 minutes ago, Duodenum said: Timed Corus really well today, in at 2.66, out at 2.93, love it. How many shares? Link to comment Share on other sites More sharing options...
Duodenum Posted April 20, 2020 Share Posted April 20, 2020 20 minutes ago, inane said: How many shares? 3000 Link to comment Share on other sites More sharing options...
nuckin_futz Posted April 20, 2020 Share Posted April 20, 2020 54 minutes ago, HI5 said: Western Canadian Select at -$1.09, but Canadian Natural Resources, Cenovus and Suncor have been teetering in the green today. How does this make sense? 11 minutes ago, nuckin_futz said: For those freaking out about oil prices. It's the May contract that's getting obliterated. The May contract expires on the 21st of April. June is trading at approx $22. Most of the trading volume has already migrated over to the June contract. May contract = 133K today, June contract = 850K today. Though it is rather eye popping to see Western Canadian Select trading as low as 43 cents a barrell. 1 Link to comment Share on other sites More sharing options...
Smashian Kassian Posted April 20, 2020 Share Posted April 20, 2020 (edited) 43 minutes ago, Duodenum said: Timed Corus really well today, in at 2.66, out at 2.93, love it. Same. Bought it a bit ago at 2.30, out at the same price Edit: not as many shares as you tho Edited April 20, 2020 by Smashian Kassian 1 Link to comment Share on other sites More sharing options...
AriGold2.0 Posted April 20, 2020 Share Posted April 20, 2020 (edited) Edit: Nope Edited April 20, 2020 by AriGold2.0 Link to comment Share on other sites More sharing options...
nuckin_futz Posted April 20, 2020 Share Posted April 20, 2020 41 minutes ago, AriGold2.0 said: Edit: Nope You should read this ............. The U.S. Oil ETF, USO, Is The Culprit Behind Oil’s Massive Plunge Watching the May contract for oil futures this morning, I was shocked at the amount of coverage given to “oil’s plunge” Monday morning. That may be because I watch the May 2021 WTI futures contract, which has fallen $0.18 per barrel to $35.34 in early Monday trading, not the May 2020 contract which has fallen an astounding $7.42 (more than 40%) to $10.84 per barrel and drawn all the headlines. The culprit here is obvious. The United States Oil ETF, USO. More in the link https://www.forbes.com/sites/jimcollins/2020/04/20/the-us-oil-etf-uso-is-the-culprit-behind-oils-massive-plunge/#5165659a24e8 ****************** Always understand the products you're trading. Link to comment Share on other sites More sharing options...
Warhippy Posted April 20, 2020 Share Posted April 20, 2020 34 minutes ago, nuckin_futz said: You should read this ............. The U.S. Oil ETF, USO, Is The Culprit Behind Oil’s Massive Plunge Watching the May contract for oil futures this morning, I was shocked at the amount of coverage given to “oil’s plunge” Monday morning. That may be because I watch the May 2021 WTI futures contract, which has fallen $0.18 per barrel to $35.34 in early Monday trading, not the May 2020 contract which has fallen an astounding $7.42 (more than 40%) to $10.84 per barrel and drawn all the headlines. The culprit here is obvious. The United States Oil ETF, USO. More in the link https://www.forbes.com/sites/jimcollins/2020/04/20/the-us-oil-etf-uso-is-the-culprit-behind-oils-massive-plunge/#5165659a24e8 ****************** Always understand the products you're trading. 2 weeks it will look good again Link to comment Share on other sites More sharing options...
nuckin_futz Posted April 20, 2020 Share Posted April 20, 2020 Just now, Warhippy said: 2 weeks it will look good again There is still another shoe to drop in oil Mon 20 Apr 2020 19:35:41 GMT It's all about the ETFs It's all about oil ETFs now. Retail money was flooding into oil ETFs today -- particularly USO -- on the belief that they were buying oil at $1 or -$10 or whatever the lows were. They didn't realize they weren't buying May oil. They were buying June, which is trading at $21.12. What's worrisome is that the USO ETF now owns a large portion of the June contract. Coming into the day it was around 30% but there are signs it could be even more today. The ETF filed today to authorized an increase to shares outstanding to 4 billion. That's after a surge above 1 billion since March and from 120 million at the start of the year. That chart will be updated again tomorrow and we'll get a better idea. In all likelihood, retail traders have continued to pile into USO and other oil ETFs. At some point they're going to throw in the towel or something is going to go wrong at the ETF itself. At one point today it was trading at more than 10% above net asset value. Funds in trouble The other thing to watch out for is funds blowing up or even problems at the CME. Oil is traded with high levels of margin. Even though most specs would have moved to June, there were still good flows in May and someone is clearly on the wrong side of that. We need to find out who was holding the bag. Link to comment Share on other sites More sharing options...
nuckin_futz Posted April 20, 2020 Share Posted April 20, 2020 Bank of America says June WTI contract to turn negative without demand pickup Mon 20 Apr 2020 19:53:37 GMT The only demand is paper demand Today's trading in oil exposed the reality that no one wants physical oil. There's nowhere to store it, no one to sell it to and nothing to do with it. The only thing that's holding up oil is retail traders buying ETFs and futures. Tomorrow the May contract will expire and we'll see what the real demand is for physical oil, then the June contract will be the front month. The problem is that USO owns at least 30% of those contracts and will sell all of them from May 5-8 as they move into June. What happens to the June contract then? Who is going to be on the other side of that trade? There were still some long-futures funds in the market but no is going to be buying any deliverable oil after today's bloodbath unless they have a plan to move it. Here's a look at the June contract: Link to comment Share on other sites More sharing options...
I.Am.Ironman Posted April 20, 2020 Share Posted April 20, 2020 USOs YTD chart.. still no signs of recovery despite the oil deal. Link to comment Share on other sites More sharing options...
Warhippy Posted April 20, 2020 Share Posted April 20, 2020 1 hour ago, nuckin_futz said: Bank of America says June WTI contract to turn negative without demand pickup Mon 20 Apr 2020 19:53:37 GMT The only demand is paper demand Today's trading in oil exposed the reality that no one wants physical oil. There's nowhere to store it, no one to sell it to and nothing to do with it. The only thing that's holding up oil is retail traders buying ETFs and futures. Tomorrow the May contract will expire and we'll see what the real demand is for physical oil, then the June contract will be the front month. The problem is that USO owns at least 30% of those contracts and will sell all of them from May 5-8 as they move into June. What happens to the June contract then? Who is going to be on the other side of that trade? There were still some long-futures funds in the market but no is going to be buying any deliverable oil after today's bloodbath unless they have a plan to move it. Here's a look at the June contract: So where does that leave potential investors for energy stocks? Waiting still for that other shoe? Because if I'm reading that right USO may have painted themselves in to a corner Link to comment Share on other sites More sharing options...
EmilyM Posted April 21, 2020 Share Posted April 21, 2020 10 hours ago, Brock Botanen said: I'm looking at getting into trading stocks. More so day trading than long term investments. Any idea how this could effect taxes? Also I'm a seasonal worker, could this also effect unemployment? It will definitely affect your taxes depending on a number of variables. You must talk to your accountant or financial advisor for advice. Talk to them about whether or not your strategy would consider you a day trader vs investor. As a day trader, your gains/losses could be treated as business income and not taxed as capital gains/losses. Talk to your accountant about superficial losses. If you're quickly selling shares after acquiring them, losses you incur may not be deductible as capital losses. Every case is different, but there are a lot of things to consider as a day trader and you need professional's help. Link to comment Share on other sites More sharing options...
nuckin_futz Posted April 21, 2020 Share Posted April 21, 2020 2 hours ago, Warhippy said: So where does that leave potential investors for energy stocks? Waiting still for that other shoe? Because if I'm reading that right USO may have painted themselves in to a corner The mess in the USO ETF continues to unfold as it trades 7.8% above NAV Mon 20 Apr 2020 23:55:33 GMT This ETF is doomed A popular take is that the May NYMEX oil contact isn't representative of crude because at this point it's oil for physical delivery while the June contract is a more liquid futures contract. It's the opposite. The May contract represents the real demand for physical crude while the June contract is puffed up by retail money. A full 25% of the June futures contract is now owned by the USO ETF and that will rise above 30% once pending trades are processed. It's an instrument used by retail traders to bet on one-day moves in oil. It's very likely that tourists in the oil market thought they were buying crude at $1 today or at negative prices in the May contract. In reality, they were buying an 80/20 split in the June/July contracts trading at $22/$27 respectively. These can fall much further. Moreover, all the money flooded into the ETF faster than the managers could create new units. As a result, the ETF finished the day at $3.75 but with a net-asset value of $3.46, according to data just released. That's a 7.8% premium. What's happened in the ETF is truly mind-blowing. Look at the massive number of newly-issued shares along with the unprecedented rise in volume today. The ETF alone now has $4 billion in assets and was the most-traded instrument on Robinhood yesterday. Starting May 5, The June/July contracts will need to be sold and rolled into July/August contracts. In the day or two ahead I expect more retail money to be ploughed into this ETF. It's a similar story in UCO, which is a 2x levered oil ETF. IT closed at $1.35 and its NAV is $1.21 and holds July contracts among other things. Add it all up and we have a retail slaughter in the making. Link to comment Share on other sites More sharing options...
nuckin_futz Posted April 21, 2020 Share Posted April 21, 2020 10 hours ago, Brock Botanen said: I'm looking at getting into trading stocks. More so day trading than long term investments. Any idea how this could effect taxes? Also I'm a seasonal worker, could this also effect unemployment? Short term gains done outside of a TFSA will be treated as income. Link to comment Share on other sites More sharing options...
CBH1926 Posted April 21, 2020 Share Posted April 21, 2020 25 minutes ago, nuckin_futz said: The mess in the USO ETF continues to unfold as it trades 7.8% above NAV Mon 20 Apr 2020 23:55:33 GMT This ETF is doomed A popular take is that the May NYMEX oil contact isn't representative of crude because at this point it's oil for physical delivery while the June contract is a more liquid futures contract. It's the opposite. The May contract represents the real demand for physical crude while the June contract is puffed up by retail money. A full 25% of the June futures contract is now owned by the USO ETF and that will rise above 30% once pending trades are processed. It's an instrument used by retail traders to bet on one-day moves in oil. It's very likely that tourists in the oil market thought they were buying crude at $1 today or at negative prices in the May contract. In reality, they were buying an 80/20 split in the June/July contracts trading at $22/$27 respectively. These can fall much further. Moreover, all the money flooded into the ETF faster than the managers could create new units. As a result, the ETF finished the day at $3.75 but with a net-asset value of $3.46, according to data just released. That's a 7.8% premium. What's happened in the ETF is truly mind-blowing. Look at the massive number of newly-issued shares along with the unprecedented rise in volume today. The ETF alone now has $4 billion in assets and was the most-traded instrument on Robinhood yesterday. Starting May 5, The June/July contracts will need to be sold and rolled into July/August contracts. In the day or two ahead I expect more retail money to be ploughed into this ETF. It's a similar story in UCO, which is a 2x levered oil ETF. IT closed at $1.35 and its NAV is $1.21 and holds July contracts among other things. Add it all up and we have a retail slaughter in the making. I wouldn’t be surprised if Fed started buying USO, otherwise it might join defunct XIV etf. Link to comment Share on other sites More sharing options...
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