I threw my wad at UVXY last week and timed it pretty good, but had no bullets to play today. Have to wait for last week's transactions to clear. My assumption is most folks today got stopped out or were not able to time things perfectly. But if you bought at 9:30 am to 10 am, you made a killing.
Not sure what tomorrow brings but never thought UVXY would be up 15% after seeing the weekend news regarding Spain bail out and futures taking off. Now we know its all smoke and mirrors and Greece and Italy are on deck soon.
"I can re-post some of my other posts showing how UVXY, TVIX and FAZ can make you money if you know what you are doing."
watsituyah, could you elaborate? Besides buying/holding or shortng, what do you recommend? I'm assuming you are selling options?
I'm a little bummed. It's frustrating to be "right" - but early. Ugh!
Bought June 25 calls last Monday for 2.55 when UVXY was about 22.50 - when my intuition was to buy puts or July exp. Today those calls are worth .15-.30 at close. Bleh. I didn't get July because the meager open interest made me too nervous. I'll need to see a huge move in the next day or two to come near breaking even.
It always seems like this seesaw action is manipulated to devalue the options on both sides (calls and puts)
against time decay. At least I have VXX and SDS July calls to ride through into next week...
I haven't even looked at any of the TA or oil/Treasuries yet today. So, thanks for the update.
One thing I should mention to clarify things, when I posted 1346 as the "Line in the Sand," it was based on the ES[M2] futures contracts. As you are probably aware, Friday, the actively traded futures became the ES[U2] contracts, which had a fair value on Friday at the change that was about 4 points less than the [M2} contracts. So last night's "high" for the [U2] contracts actually exactly coincided with the 1346 "line" of the [M2] contracts.
I'll try to review the charts later, right now I am going to attempt to be productive. By the way, I also didn't follow the market during the day today, so I was also pleasantly surprised when I tuned in around 3:30.
Ahh, such an honest board. No one except awong01 sold at open and no one else had there stopped taken out during the first 30 minutes of trading. Guess everyone here was a winner today, but something tells me quite a few folks that held over the weekend sold UVXY early in trading day. Can't blame traders for bailing since it looked like the kiss of death this morning for UVXY and was for half an hour.
Of course I'm sure everyone here who held over the weekend knew the DOW would be down 140 points at close. And I'm sure they doubled their bets at market open since cause their crystal ball told them too.
After this weekend, I said, "F*** it! I'm gonna let it ride!" So I took my stops out as I knew this market couldn't go up in a straight line forever. Of course, that meant I was willing to lose everything. Anyways, I can let out a sigh of relief now as I believe the momentum has shifted to negative and the intraday trendlines that the market was floating upwards last week on have now been broken. Last trendline left would be in the 1285-1290 area, but I don't think it will hold going into elections this weekend...
It is all smoke and mirrors.
I went long Friday at $15.80 and watched it trade down and close at $15.45. Then with the bailout announcement, I thought I would lose a ton today.
I held on, and thank God for the reversal.
These bailout schemes are irresponsible, and the market knows that.