We get a correction...sell in May or April...go away....UVXY will not have major spikes without a major downward move in S and P. If the correction is slow, UVXY will stay in a range.
Looking forward to RS and opportunity to short. I have tried to go long as we break new highs in the market, but getting stopped out with very small gains. Same thing on the short side. Have a few shares long holding over weekend, but reduced much of my long yesterday.
Let's take your argument of "slow correction". Between 9/2012 and 11/2012, there was a slow correction. Using my method of trading, I would have made really good money even though the trading range was tight. My real trading of UVXY started in late January 2012 and there was a small pull back in late Feb 2012. I made good money during that time and this time it is real money. It has been proven that you don't need a big crash to make money with this POS. In fact, many day traders only make 10 cents to 20 cents per share per day. At the current price of 7.60. That is equivalent to 280% gain per year.
Cannot argue with you. If I would have know about these products 18 months ago...I would have been day trading....mostly short. I have just started to educate myself on this ETF along with XIV...VXX. However, we are at all time highs. I listen to justification that stocks are cheap on relative basis when compared to 2007. I listen to justification that USA is the best place to invest. We have heard these arguments over and over again over recent past and all we get is a sell off going into summer. I am going to place my bets that this summer will be no different. I am long cash...with 10 percent holding my core stock positions and some long UVXY...VXX. I do not play options, so I am hedging my small position in stocks by buying long these ETF's...selling the pops and going short. I do not stay in more than 2 days. My thesis is that once we reach 1580 on the S&P...time to go long UVXY and VXX. I will put in stops, but they will not be as tight as my current stops once we reach these levels.
It is all a guessing game. One thing that I have learned is to trust my instincts, but lose the pride and bail quickly on any stock or trade if it is not working. I also have learned to take profits instead of waiting to get rich quick on any stock. I will take 5 percent gains in a heartbeat and live to play another day. There is heartbreak along the way with this philosophy, but always take profits. The one trade that killed me was TPX. I traded in and out for about 6 months taking small profits along the way. My last trade got me in at 26 bucks and out at 32. I have been watching it leave the station since...now 50 bucks.