If you expect markets to fall, short TNA
Buying this contango loser (20% a month and 99% a year contango effect) is going to be a disaster unless the timing is correct.
Neither Kass not Wein has good track records on timing the market. Eventually they may be right at some point .. but by then UVXY may be at $5 and jump to say $8 from there. Still you will be sorely losing if you long this now!
If you can get timing right (nobody can?), you may have some short term profits in UVXY .. otherwise, it will be straight DOWNHILL long term (99% downturn annualized).
Doug Kass is "getting that summer of 1987 feeling," telling CNBC he's raising cash ahead of a likely 80 or 90-point trimming in the S&P. "The secular challenges are unprecedented. We are in a period of slower growth. Ultimately, fundamentals rule stock prices," Kass warns, also expecting the U.S. economic recovery will prove weaker than expected.
So should I add to my UVXY long shares tomorrow in the morning or wait until EoD? Do you recommend that I use margin and further compound my gains by writing puts too? I don't want to squander the greatest call of all time here. Thanks.