Retail idiots paying rounds of drinks, but expect regulations...There are ways to make a lot of money with controlled risk with wti futures (very limited if done right but don't try if you aren't very knowledgeable in this area), but who is paying for all of this free money?
Altruistic retail investors of course!
A few weeks ago there was a massive influx of retail money into Oil long ETFs.
USO holds I heard about 1 third (!) of open interest for the front month (all long).
I think they were part of the reason why May went to minus 40 (they had to rollover).
There is still a huge contango between June & July, and as every one knows retail NEVER sells.
Their warcry is "You don't loose if you don't sell", therefore this situation can last a while until the ETF collapses completely, or the SEC/CFTC/FINRA shuts it down.
There are opportunities to make money, for example with the big contango, as well as potentially when this mega whale rollsover their contract, or when they * joy cry * have to liquidate all assets (imagine the shock to Oil futures!).
I heard people say that many of their friends are calling them all excited to speak about buying Oil, and they bought this garbage ETF.
The thing is these reptilian brains for some reason think they are buying spot Oil, or maybe even physical, they have NO CLUE what they are buying.
They're buying contracts for a specific month. And creating a big problem. And are going to get decimated.
I don't know if they are buying because of some random indicator or because they think Oil is cheap or because they are simply programmed to go against trends the more strong they are the more they go against...
The ETF is losing more than Oil.
LOOK AT THIS:
The ETF since its creation goes down more than Oil and goes up less. These cretins are bleeding money constantly and happily buying more and more.
Why do they have to be so enthusiastic about negative sum games? Bitcoin that produces nothing and burns money via exchange & miner fees, this....
Stupid things can last a long time, but I have a hunch this won't last much longer, we are in the capitulation period, huge exponential influx of dumb money, on Robinhood alone 165,000 holders. As traders pile on the opportunity the huge gap will lessen and it won't be as easy to profit from.
It's only interesting because the gap is so enormous.
From the FT:
And the gap right now is 33% for only a 1 month difference (was 43% hours earlier maybe it's over very soon).
If the difference in price becomes too small there probably will be the chance to go short around the expiration date for june, and short when the ETF has to liquidate, and there probably will be more other scams like this. Millions of hurray shouting retail investors are doing all sorts of dumb stuff and ignoring advice and all this money they will lose, billions and billions, has to go somewhere, might as well end in our pockets.
We also have russia & the saudis on our side, they're so going to run us companies out of business.
When they realise they got fleeced, they'll cry, and it will be a sensitive subject, and the useless regulators might strike again.
If it's just a few hundred thousand buffons getting scammed it might not be big enough for regulators to make big changes, hopefully.
But with the internet, the much lower costs, the way investing all your money in anything got made so easy, more and more of this will happen, and at some point some big rules will be put in place, and not just warnings (like those help, they keep repeating so often it's irritating "wow watch out this is very risky make sure you understand bla bla bla"), perhaps even a complete interdiction to participate in markets for retail... It would be a shame for the next generations, I don't worry for myself by then I certainly will be able to just take the professional status, but what about new people with potential?
Perhaps markets are better off without all those casino regulars.
Will keep an eye open and extract as much as I can from their pockets. WTI is going to be insane I think until they get completely wiped out.
How do you can having negative remorse? The opposite? Because that's what I have for taking advantage of the situation.
Talk about a wealth transfer...
CNBC has an article on this, lmao they are calling those investors "retail tourists" I'm dying xd
If those people have so much money to lose and don't care what they buy, can I have some of it? Just send it directly to me...
www.cnbc.com
(They got a crude awakening hohoho)
Go figure...
Hey I just created a family business tracker, tracks the price of my poops and farts.
Poop price is dirt cheap, down 99%! And farts price went up.
Quick warn the retail investors! They don't want to miss this opportunity.
