Im going to pitch you the most bullish bet in your life. Short USO, but not in the way you think. We all know there is no storage left. Literally none. Its all full. All of it Enter USO. This shitty ETP is literally buying futures contracts. contracts that necessitate delivery. Are robinhood users taking delivery? Fuck no The plan is to roll these contracts over. Rolling means selling them. To who? Literally who? Retail retards piling into USO is creating a bid in futures for oil producers to sell into. Once the producer has locked in short of his production delivery is not his concern. He is going to ram the oil into the pipe come july and everything else is not his problem. This is going to blow up spectacularly when USO tries to roll 40% of their positon, July oil. Where is all this oil going to go? You cant shut the wells down. Once they dip below 60% production the well fails and so does Murican energy independence >Enter motherfucking tankers. Buying tankers is taking the lunch money from USO retards. There is going to be such a huge surplus of oil its going to take years to work it off. All while tankers are being taken out of the market. At 200k per day(you are here) DHT pays a $1.50 dividend per quarter Thats $6 per year on a $8 stock. How long does it stay $8 biz? Other companies like scorpio are earning their market cap every 60 days. Earnings, not revenue All these tanker companies report earnings over the next 14 days. Secure you rocket ticket.
TLDR: Want to steal USO retail retards lunch money? Buy tankers. DHT is the best pure play. USO will get liquidated when oil goes to negative $100. Tankers rates will surge even higher so Murican producers can keep pumping
I have a heavy USO bag, its not the end of the world I'm up huge right now in total. USO was a mistake. So whats the play now, hold on for years? Or take my spanking and sell the shit now?
Tell me why I shouldn't throw $500 at an index fund right now.
Camden Allen
has humanity achieved the permanent bull? no crisis is ever going to set us back ever again, when we defeat the virus soon we'll open borders and sing Imagine by John Lennon
