VelocityShares 3x Long Crude ETN (UWTI) did a 1-for-10 reverse split today. That means for instance, that if you formerly had, say, 500 shares, you now have 50 shares at ten times the price of your original cost.
Overall, the net money has not changed. However, it’s interesting that the reverse split has come at a time when I expect a short-term pullback to occur, since oil has hit my first upside target of the $39 level.
Oil has much more to go on the upside, to at least $50. But for now, let’s be prudent and take a modest profit off the table in UWTI. Hold your UCO call options.
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For All Members Who Own UWTI: SELL all of your shares of VelocityShares 3x Long Crude ETN (UWTI) at the market and simultaneously cancel ANY protective sell stop for UWTI you might have placed. |
Hold all other positions and stay tuned …
Best wishes,
Larry
