DXO Steadily and Quietly Moving Upward

Despite the world as we've known it is coming to an end, oil still lives, and recently it is showing the sign of increasing strength. I have DXO in my holdings which I purchased over time from December 08 till mid March 09. At first it was a "put" against geopolitical risks (Middle East), and in February and March I added more. I didn't think the oil price would go below $30 any more. After that, I didn't even carefully look how it was doing.

Well well. Slow and steady wins the race.

DXO is an ETN that tracks 200% of the daily return of the Deutsche Bank Liquid Commodity index. It had a misfortune of making the debut just when the commodities were correcting from their top. In today's ugly market that turned suddenly negative on Treasury auction news, it is still holding gain of about 2.5% with about 20 minutes left.

It's been in a rising channel since February, and right now it is hitting against the upper channel again. That happens to coincide with the resistance line from last November. It may finally break above this line and the channel.

I still don't think the crude oil price will go down below $30, or $40, even $50, recession/depression notwithstanding. It will be supported by inflation that the governments all over the world are trying desperately to create. (Just wait till the huge monetary base gets unleashed...)

It is, in a way, still a geopolitical hedge (it's a hedge against government actions). Too bad I only have 1500 shares.