HOU - Horizonz BetaPro Bull Nymex Oil ETF (TSX)

was just about to post this one. bought in at 2.75 friday

as i posted in the ixs thread, i would wait untill it stabilize at lower levels. Oil continues to be beat up now.

I don't understand this. I have a feed for certain stocks on the Toronto exchange. This stock is down to 2.83 today. Other stocks, I have nothing for them. GCE.TO and GPR.TO I also have prices on.

OPEC cuts record 2.2 million barrels a day

Dec 17 02:33 PM US/Eastern

ORAN, Algeria (AP) - OPEC on Wednesday agreed to slash 2.2 million barrels from its daily production—its single largest cut ever—while bloc outsiders Russia and Azerbaijan announced their own cutbacks of hundreds of thousands of barrels from the market.

"I hope we surprised you," OPEC President Chekib Khelil said when asked whether the size of the cut would shock moribund oil markets into an upward trend. "If you're not surprised we need to so something about it."

And yet markets weren't impressed.

Crude oil sank to $40.20 after the announcement, a level not seen since the summer of 2004 and a clear sign investors are more worried that the world is heading for a long and painful recession in which energy use will continue to erode.

In just five months, crude has given up all of the price gains made over the past four years.

Making matters worse for OPEC, Moscow distanced itself from direct ties with the 13-nation producers' group, further dampening OPEC hopes of coordinated production cuts that might put a floor under crude prices.

OPEC said oil ministers of the 11 nations under the group's quota system agreed to take 4.2 million barrels a day off the market, but that includes two previous announced cuts that totaled 2 million barrels.

That leaves the new output reduction announced Wednesday at 2.2 million barrels, effective Jan. 1.

Still, even the record cut was unable to counterbalance consumers' concerns about the dismal world economy.

In the U.S., the world's largest crude consumer, the Federal Reserve's decision to slash its target interest rate to nearly zero buoyed global stock markets Tuesday and early Wednesday.

But the news on the U.S. economy is expected to get worse before it gets better. Businesses, which have already cut nearly 2 million jobs since January, keep laying off workers in the face of slumping demand.

The government reported Tuesday before the Fed rate announcement that home builders slashed production in November by 18.9 percent, the biggest drop in nearly a quarter century. That pushed activity down to a record low annual rate of 625,000 units as the woes in the property market, where the current economic troubles began, showed no signs of abating

Focusing on the shrinking oil market, OPEC noted in its statement that "crude volumes entering the market remain well in excess of actual demand."

"Moreover, the impact of the grave global economic downturn has led to a destruction of demand, resulting in unprecedented downward pressure being exerted on prices," it said.

The group said "if unchecked, prices could fall to levels which would place in jeopardy the investments required to guarantee adequate energy supplies in the medium to long term."

In addition to signaling that a major cut was in the offing in the days leading up to the Oran conference, OPEC ministers had expressed hope that Russia—the No. 2 producer after Saudi Arabia—would join in a significant cutback that would bolster prices.

Such support would be significant. Non-OPEC members Mexico, Norway and Russia last slashed production in the late 1990s, at a time oil was selling for about $10 a barrel.

But although Russian Deputy Premier Igor Sechin and Azeri Energy Minister Natik Aliev announced cutbacks of a total of more than 600,000 barrels a day, their commitments appeared largely symbolic.

The Russians indicated their reductions had already been implemented in November, while Azerbaijan's output had already been reduced by about a third due to production problems earlier this year.

Among those hoping for Moscow's support was oil powerhouse Saudi Arabia.

"We also hope that other producers who are not in OPEC will chip in for the purpose of bringing stability to the market," said Saudi oil minister Ali Naimi said, in a nod to Russia.

Sechin, in comments to The Associated Press, said "Russian oil companies have already made a decision to cut deliveries to the market ... approximately equivalent to 350,000 barrels per day." But he specified that his country's cuts had already been enacted ahead of the OPEC meeting.

Sechin did hold out the possibility of further reductions, saying Russia was ready to pare another 320,000 barrels a day "if we see the continuation of the current level of prices on the world oil markets."

But with Russian production falling, due in part to lagging investment, it was unclear whether some of the cuts enacted or proposed were simply a way of packaging Moscow's inability to keep up present output levels. Even before Sechin's comments, Russian output—now close to 10 million barrels a day—was expected to decline by 1 percent this year and by around 2 percent in 2009.

That—and the fact that Russia was announcing reductions already enacted—diminished the significance of its move.

http://www.breitbart.com/article.php...show_article=1

Gold bullion still solidly outperforming crude for the time being.



As are gold stocks...



TZ

Thats the best time to buy this ETf!!! Ok, you could wait until oil starts to run but then you are missing out on lots of %.

Addition: Its also incredibly short sighted to see this isnt an awesome entry point for HOU even if it drops a bit more which is looking unlikely now its great to avg down! The only way you stand to lose anything on this is if oil basically becomes worthless.. or someone figures out how to turn water into gasoline

A poster on another board is saying that oil is up 4.26 on overseas trading, does this help?

It's currently 39.78 on the Globex (January contract).

http://data.tradingcharts.com/futures/quotes/CL_.html

The fact that it's dropping on the supply cuts indicates more downside IMO - that's pretty bearish price action.

TZ

yes, bearish for the short term. More time and oppurtunity to build positions

bought a little bit on the 20% pullback today at 2.52

well i guess i was right.

be patient. it's still going down.

Lol you being right or wrong is irrelavent It was a good buy at 3$ and its even better now. I just get the feeling of a hungry wolf stalking a wounded deer with HOU this is gonne be a nice ride sooner then later.
Just to let you know frank, your silly hindsight comments dont impress anyone.. So oil is freakishly cheap? Remeber when it got freakishly expensive what happened shortly after? anything can happen.. Lots of analysts called this slide into the 30$ range weeks ago.

for example FRANK, If you were to have opened a position in HOD when oil was trading at $125-130, you might not have got it spot on, however, you made some awesome gains. especially if you decided to average a bit over $140. Its remarkably foolish to think you can call exact high or lows consistently and there comes a point where you have to pull the trigger sometimes.

you said yesterday that it was the best time to buy. You were proved wrong. I just said im wainting for oil to stop dropping and stabilized. Im not trying to find a bottom like you and using a looser technique (averaging low). Im waiting the market to show me the right moment. You tried to make me look like a fool yesterday. Looks like you were caught in your own game. sorry.

oh the contradictions. "I am waiting for oil to stop dropping. I am not trying to find a bottom and using a lOser technique". Waiting for it to stop dropping is bottom picking. Well no point arguing with you, Marty said it best on the IXs thread. your a troll.

i think you dont understand. i thought it was clear. Im wainting it stops dropping and stabilized. It hasnt done this since it started to plunge from 150$. How is it trying to find the bottom? If i was tring to find it, i would have enter at multiples times in the drop. That is not the case. Im not even searching for it. im waiting the market shows me. Thats the same case with IXS. you guys were calling good buy opurtunities all the way down. Keeping averaging low. THAT'S trying to find a bottom. It's 6 cents now LOL! pathetic technique

agreed In alot of cases avging low is a bad technique thats for sure, in some cases not so much. I dont mind avging down on HOU because im very very bullish on oil supply fundamentals. IXS, I cut out of that one at .275 and my cost was .30 lol. Im looking at renetering soon...

im bullish on oil too for long term. But i wait the good entry point. A 70 cents difference on a stock at 2-3 $ means big money. There's nothing urgent for the moment