It is just incredible plain and simple. I would never tell ANYONE in their right mind to buy VXX but I sure have placed many people short who contact me daily thanking me! Hehehe. Its a great portfolio, credibility builder with out any management what so ever!
So why did you go Long VXX at 21.14 and 21.24 this morning? This morning would have been the perfect time for you to have entered the Short side that you have been saying you would love to join....? What's up Wes?
I doubled up my short position in UVXY. However, I could see how someone might be drawn in to this Cyprus headline. I did not think the market would have a prolonged negative response because, quite frankly, if these EU issues continue to dictate our market this many years out, and with any headliner that suggest a potential contagion problem, then there will never be an end to the saga.
I think from here on out, it will take a little more than just a potential problem, but a real and persistent event, such as Greece actually booted from EU, or Spain now bankrupt and being bought by China.
These little market teasers are just not going to rock the market like they did before.
What is odd at the moment, is that the market is almost flat, yet VIX remains up quite a bit for the day.
I am just of the belief that we will see a temporary pop in VXX that outweighs the slow slog down you will reap on the short side, that's all. I would never recommend for someone to follow me. I have my reasons but by buying VXX you really are calling yourself and idiot hehe - UNLESS - you can properly manage it and understand the daily loss it brings when you are not right instantaneously. I would not make a habit of this for sure!