I know we are all confused with the stock market movement this past 2 weeks. Let me put this into perspective.

Positive news driving the US stock market up now is:

1) US Federal Reserve stimulus plans
2) Trump opening up economy early
3) Potential new drug for Covid (not vaccine)
4) Daily infection rate in US is stable

Potential negative news (not happened yet):

1) Worse than expected impact to Q1 & Q2 corporate earnings
2) Unemployment rate >30% (current 22%)
3) Worsening of pandemic once lockdown is removed
4) Crude oil prices drop <$16

The positive news is already happening while the negative news hasnt happened yet.

So of course stock market will go up. Its driven by current sentiment and the current sentiment is positive.

Simple logic.

Most major banks reported a 30++% increase in their investment trading revenue. When everyone is waiting for the dip.. the dip might not happen as money keep flowing to the stock market. These money are fresh funds where even those who never invested before are starting to invest in the US stock market.

Although that being said:
"Anecdotal reports, while encouraging, do not provide the statistical power necessary to determine the safety and efficacy profile of remdesivir as a treatment for Covid-19,"

The term anecdotal itself looks like a pump and dump scheme  . Trade with caution..

Long Term QE effect: Inflation on broad basket of item as value of money goes down.

Short Term QE effect: Inflating asset class, as this is where the money flow in the fastest

If we have learned something from last financial crisis is that free, cheap and easy money will always flow into equities first and subsequently other asset class. Last round of QE already benefited asset holder so much, if we din't take advantage of Global QE 2.0 we would be a fool.

If you look closely, equities has already become even more inflated. AAPL has gone back to their dec 19 highs as if the covid19 and china/US retail store shutdown never happened. So in value wise, AAPL has actually become more expensive. Their market cap remain at dec 19 level, but their profit definitely not comparable. Forward PE has definitely gone up by a fair margin.

But the bargain hunter within me cannot buy it even though I know helicopter money is inflating it to infinity and beyond. Oh well, lets hope market gets rational soon and we see a correction nearer to the true value. Or either QR out and people got shock. Fighting my FOMO to wait for either one to materialized.

i'm actually thinking of starting a new thread with a friend to provide our view on any instrument but I am not sure when i want to start.

So if i want to buy WTI how do i go about doing it?

i was confused too before, but after the explanations from teachers here, i think i understand it now.
the answer to your question is, NO. The idea is this. All ETFs that trace oil futures, when they need to renew contracts, they will spend a few days to do the switch. ie, as for today is April, they need to switch from holding May contracts into holding June contracts. They sell May contracts, and use the money to buy June contracts. You see, they won't make profit by switching into June contracts just because June contracts price are higher. In fact, they need to sell more contracts to buy less contracts because of the price spread.
Please correct me if i was wrong. 

Did WTI crude oil just drop to $8.80??

according to some analyst will drop to $2.   ......

anyway despite WTI spot price drop like more than 50%, dow jones still like standing still. weird....

So when do you think it will start impacting the stock market or the O&G stocks?

Im still skeptical as to why there is no broad based impact to the US stock market with WTI now at $2.80. S&P500 is only down 0.80%. Do they see something we dont?

The WTI May contract will expired tomorrow before or after market opens?

Never bought USO ETF via IB before. Any experts here? Just look for USO under ETF and buy? What's the fee like? Thanks.

Ya I guess I am blinded by greed. Just checked, costs about same as stocks. Max 0.1% of value. Correct me if I am wrong, this ETF trades on the oil price futures right? Meaning profit and loss based on the value of oil? Higher oil price means higher profit or is it determined by the managers of the fund when they price in the expected contracts price for eg June?

Oil Spirals Below Zero in ‘Devastating Day’ for Global Industry

..U.S. crude futures plunged below zero on Monday for first time
..Rout will send a deflationary wave through the global economy
..West Texas Intermediate futures have been the benchmark for America’s oil industry for decades, seeing the market through booms, busts, wars and financial crises, but no single event holds a candle to this. By the end of trading, the contract had slumped from $17.85 a barrel to minus $37.63.
..The largest crude ETF, known as the U.S. Oil Fund, received billions of dollars in fresh funds in recent weeks, accumulating a fifth of all the outstanding contracts in the May futures contract. But last week, it rolled its position into the June contract, and evaporated from May. Without the fund, the contract was abandoned to the the forces of physical supply and demand.
..Prices rebounded back above zero on Tuesday, but still were trading at just $1.38 a barrel at 12:21 p.m. Singapore time.
..The contract settled at minus $37.63, a drop of $55.90. And there’s still another day of trading to come before it finally expires.
“The May crude oil contract is going out not with a whimper, but a primal scream,”
..Many refineries and pipeline companies told producers on Monday that they would only take their oil if they were paid.
..Trump responded to the negative prices at a White House press conference Monday with plans to fill the spare space in the Strategic Petroleum Reserve and by saying he would look into a proposal to stop shipments of Saudi Arabian oil that are currently en route to the U.S.



https://www.bloomberg.com/news/articles/202...nd=premium-asia

The WTI May contract will expired tomorrow before or after market opens?

interesting suggestion!

USO stops moving? halt?

What's the risk of the fund closing?