So I win on UVXY 9 times straight and thought I was a badass then lose last 4 times. This time just a $450 loss. But I still believe market in near top but again thats what I believe not what I know. SO had to sell.
To hold UVXY long is to lose. From Mid-May to today, $VIX up from ~$15.5 to ~$15.8. During the same period, UVXY down from ~$25 to ~$5.5. So, since mid-May, the $VIX has risen slightly and UVXY lost 80% of its value. See the correlation? Me neither! Nobody does. You know why? THERE ISN'T A CORRELATION!!! UVXY goes down no matter what the $SPX does, no matter what $VIX, spot VIX, futures $VIX, etc., do. Look at the UVXY chart since its IPO. Over the long haul, you will not make money staying long UVXY. UVXY is a fantastic, low-risk, high return long-term short and a high-risk, luke-warm, short-term long trade. Play it any other way and you will lose. That's why Rene got out. She should stay out, or go short. Or end up 9-5. JMO. But, I'm open to argument. Anybody out there want to enlighten the UVXY MB readers and tell everyone how I'm wrong about UVXY's performance since mid-May? We're all eyes. GLTA!!!