Uvxy for the last three, four years has pretty much traded straight down. Sure there have been some moves up but they never hold. Uvxy has done three or four reverse splits over the years and I'm sure will do another when it drops into the single digits again. The question I have this - is Uvxy a possible long term hold (going long in a correction) or is it just a day trading vehicle even when the market sells off?. So when the market turns do you take you 10% to 15% profit and walk away? Or do you look at history (uvxy three year chart) and say I'm in for a long ride up? With this short eft down something like 500% or 1000% or what ever over several years, a 10 to 15 percent up move is peanuts in the big picture. Just curious if the players here will hold uvxy in a kind of market sell off (for several days - weeks) or will they cash in there one or two day gain and watching from the sidelines?
i would disagree w/ russell.
there seem to be about 5 or 6 weeks a year which you can be long uvxy, but it has to be something really making the mky nervous. these morons that are thinking its spiking up now on rumors that maybe something happens between israel+syria/iran are getting slaugthered today over believing hype.
also, you cannot go long this more than a week or you'll give it all back. you gotta sell the moment news comes out the crisis is resolved. i sold uvxy and went short uvxy and bought svxy the minute obama said there's going to be a deal.
i suspect there's about 3 days in may before the debt cieling is resolved to go long and thats your next chance.
i'd recommend buying svxy or xiv and holding over trying to catch a long opportunity here, the risk/reward is too0 much.
I say this rather politely, but if your post is serious, then I would recommend you staying away from UVXY. It is not an investment vehicle. I wouldn't even call it a trading vehicle. I say that because most trading vehicle you have a structured 50/50 chance to make money. However with this is much much less because it is biased to go down and there are typically no shares to short. So to go long is really bucking the trend. I bought today knowing full well how this works - I was wrong in that I really thought there would be more resistance at 14,000. Never did I plan on holding it more than today though.
Typical short reply when the first poster was asking do you long uvxy during a correction. They answer is YES with the following stipulations.
You put a stop at your buy in position and let it sit. If the market corrects over an extended period - few days, weeks you leave your stop alone and let her ride higher. Uvxy will ride higher but not necessarily in a straight line. Shorts here want you to sell your shares so this eft fluctuates up and down. In a correction you want to hold and let "shorts" suffer their wrong way bet. Believe me when Uvxy smells a market sell off it will ramp higher and be the leading mover in the stock market. Only question is will the market have a sudden hard correction when uvxy triple (plus) or a some what extended sell off when uvxy goes higher but also fluctuates up and down.
never,ever,EVER go long on UVXY !!!!!! Under any circumstance !!!!!
the biggest reason is that you will find yourself 90% down in a hurry and if there is a correction you will probably sell when you are down 60%.....you'll be happy to just get back something....