I did short oil, too early, at about $90/bbl. Within 45 days I was up 25% on that position, net, but that was thanks to the overall decline in the stock markets of about 20%. I should have sold that position THEN. FYI, it wasn’t technically a short oil position but more a short position on the Oil & Gas Index, as I bought the ProShares short ETF, “DLG” which is 2X leveraged for inverse gains against the Oil & Gas Index.
Now with oil having touched $120/bbl, i’m getting my butt kicked by still holding that DLG position. Of course, I’m not stupid. I never put more than 10% of my portfolio into that risky bet.
HOwever, oil has fallen $10/bbl in the last few days. Let’s hope that trend continues. There are A LOT of people much smarter than I who are experts on the oil sector and who are currently talking SPECULATIVE BUBBLE in oil, and are shorting oil.
