My post a month ago here (https://www.reddit.com/r/stocks/comments/tr0n7d/investing_in_oil_gold_and_other_things_for_the/) proved that I was unfortunately right. I wish I was not but accurate insight is more worthy than bubbly false hopes. I am up over 40% my UVXY I told everyone to invest in. It is up to you if you want to sell yours if you hold it longer, I sold all of my remaining today because I see May being a crazy month of up and down. I see the S&P 500 easily going lower than 4,000 and I also see it going above 4,700 in the same month of May.
One big fat elephant in the corner that will help it go lower than 4,000 is if the China COVID lockdowns end this next coming month. The China COVID lockdowns are one of the main reasons oil is not above $130/barrel. Another thing that is going to come to a stop is the Biden oil reserves being of any help. Reserves are going to run dry pretty soon – and that is when oil stocks/etfs (especially leveraged etf OILU) will rise upward.
Common knowledge is that too many companies will not be able to functionally handle the price of $130, $150, or especially $180+ per barrel oil. Those days are going to come though folks.
My personal positions are as follows:
Bought up 207 TQQQ shares because we will have a good next week probably starting Tuesday. Suggest to sell once a 20% profit is made.
Bought up 97 more shares of OILU since oil is going to begin to go through the roof in the coming 30 days.
Assuming the S&P 500 hits above 4,600 by late May sell TQQQ and buy up UVXY again.
The grand finally buys? Once oil hits above $180/barrel sell everything and buy up SCO as the recession becomes a reality.
To clarify, the China lockdowns will almost for sure not be over by the end of May, and we have enough reserves to last until then. May will be provide to be an exaggeration of positive. Once June 2022 comes the party is over and high oil prices will bring down many “good” stocks.
Invest in VOO, AAPL, etc for the long term if you want, but why not make an actual profit this year instead of going with the crowd and ending up loosing money?..
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