That’s happening because there’s no demand for oil, and far too much supply. Worse, we’ve run out of places to store it.
While this is bad news for those long oil, it’s great news for us. April 6, 2020 is when we first highlighted ETF and ETN opportunities that run higher, as oil runs lower. We added to those positions yesterday before oil futures dropped another 200%+.
To date, here’s how they’ve done.
· DB Crude Oil Double Short ETN (DTO) ran from a low of $60 to $191.
· Pro Shares UltraShort Bloomberg Crude Oil (SCO) ran from $20.28 to $35.49.
Those are insanely great returns since April 6, 2020. The best opportunity at the moment is to consider exiting half of those two trades to secure wins.
For today, it’s best to stay on the sidelines until markets cool off here. Dow futures are sinking again thanks to falling oil prices, and coronavirus fears.