just found this on the topic - very interesting:
"Why did FACT say he would no longer buy USO or HOU.TO until they change their policy? One word Cantango. I have nothing against pepole who want to buy Oil around $40 a barrel, that's a cheap price and there is strong chances that crude could rise in the next 6-12 months. Even $50 is a 25% increase,not bad. But if you want to profit from the increase in the price of Oil USO & HOU are not the way to do it. $3.46 Billion was pumped into these etf's since December. Until we saw the violent selloff last Friday in USO & HOU.TO we assumed they were just Oil etf's that moved with the price of Oil. FACT started to research these etf's something did not feel right with the charts, I suspected we could get a violent move up and sure enough it came the next day after I posted. I also warned many times that the etf's seemed rigged and did strange things that made no sence to me at the time. Now I know what they are doing thanx to some research that I stumbled upon that Matt Hogan was working on, Matt never noticed that they were using these ETF's to suppress the price of Oil but being in Gold for so long I know about the Cabal tricks. The ETF's are using as I posted yesterday, they are using the very investors who buy those etf's in the name of rising Oil prices, to suppress the price of Oil. Hunnh? Yep remember last Friday pre-market the etf's sold off violently? I thought it was some kind of scam, turns out here's what they did, and it further goes with what I have been saying about those etf's, you have to dig deep to see what they are really up to. And it upset's me to no end that they passed these off as the leading Oil Etf's in North America. Everything is sneaky in sneakyville.
This is simple FACTnomics, I listed yesterday the current prices for Oil contracts with expirations in the next 6 months. Every Contract is more expensive then the previous one, (in laymens terms the futures on Oil contracts rise each month.) These etf's follow a simple stratigy of buying the current contract and then rolling it over into the next contract B4 the current one expires. Until last Friday USO owned the Mar 2009 contract, 84,378 March contracts to be exact. Equalling 84.4 million barrels of Oil,. But on Friday pre-market they sold those contracts and bought the April contracts instead, but cause April cost $6 a barrel more than the March contract, it could not afford as much Oil, it could only buy 73,444 April Oil contracts. Just like that holders of USO and HOU.TO lost 13.4% of their exposure to crude. This also if you remember sent the price of Oil falling that day, anyone who was looking to buy Oil had to pay the higher price of the futures in April, but thanks to these covert Cartel controlled Etf's they just flooded the market with 84,378 barrels of cheap Oil sending the price down and using the very investors who thought they were in the fund to benefit from higher Oil prices to push Oil prices lower. The value of the April contract will decay back to around $40 or less over the next month. Even if the price of Oil jumps 15% over the next month-B4 the Etf's roll over their contracts again into May contracts-Investors will just break even. This cantago killed Oil investors in January and it's worse now. FACT"
goldismoney.info |
