With the Spot up almost 5% more than the tracking product I'd say this is a very good "pop" to enter into a short position.
The contango is unbelievable. This is going nowhere but down. This looks like a nice moment to begin a smidge of a short. If I am wrong I will add on the way up for sure!
Today bought VXX June 15 puts. Small position but should work. Should be good money.
My UVXY did great. My TVIX SUCKS. lol
On light volume..Men behind the curtain control market...news does not matter for long. (unless it's good), then they pump the heck out of it.
Remember...Huge Retail was in on the big dips/ crash before. They are long gone now. Now it is just us traders against the machines who are FED 'almost unlimited funds'.
One more thought/ observation.
WATCH OUT WHEN CNBC GETS TOO BEARISH...SETTING UP BEAR TRAP!
Don't fall for the "Sell in May" crap.
I tried the long side. I bought at just about the bottom of the last uptrend and SOLD almost at the top with in pennies. It was incredible timing. Then it dropped back and I jumped back in of course.
I got slaughtered and gave it all back.
In hindsight, the person who sat short and waited and went golfing and napped in the afternoon, profited handily. Seems like a much better strategy and it allows you to negate just about every headline shocker..IMO.
Wes--Hard to take a short position this low for me. Would love to see $18 or so again. Did you or anyone here look at CPTS? Up another buck since I mentioned it, on nearly ten times the normal volume. It is still cheap for anyone wanting a good longer term investment. The only competitor was forced out of the market.
Yes I felt uncomfortable entering here as well but I quickly remembered that if I am wrong, my mitake will soon be forgiven due to contango. Any wrong entry on a short position is corrected with in a few weeks for certain. Just look at todays correlation of the Spot and the Futures.
Suggesting to me that there is not a care in the World what happens with the knowable events and headlines. Scary thought that none of this has the slightest impact on volatility. I am no one to argue though.
Ill look at that stock as well. Thanks.