I bought 690 of UWTI yesterday at 25.20 and woke this AM... saw it at 27.28 and sole it immediately before my feet even hit the ground. It's at 26.60 right now. Who would have thought?
That being said... do not hold UVXY long term... cut your losses quickly and wait for a better entry point. DO NOT expect to regain losses even after a week of declines. You may... but do not bank on it.
It seems these R/S coincide with a possible market retrace. The last time UVXY had a R/S... the expectation was it would fall further... but it did not... in fact... it rocketed to over $100 per share. Not saying this will be the case at all, but I've been around for the last 3 R/S and each time it's bucked the trend and created exceptional short opportunities in the short term. Check it out... look at the history. It may fall further from hear as the market hit new highs, but with with new highs come a bit of anxiety they will have an effect on UVXY.
I think today was a blessing to be able to get out of UVXY at a slight less than breakeven for me. With the R/S looming... UVXY can be in the 5s before July 29th.
Yeah... I had to exit this AM at 9.47... lost $0.10 but... with the announcement of R/S coming July 29th... I know where this is headed... not worth the risk to me holding 3500 shares.
Give us a nice little bump with a late day selloff...
But I've been here plenty of times before and hit payday... it's still nerve racking because I know what this can do on the downside too.
Maybe... I'm in 3500 at 9.57... painful to watch here. I think 8.47 might be my max pain. :) I really didn't see 4 days of madness.
It's just about to the point where it happens.
I'm sitting on 3500 shares I need to unwind at 9.57... We need to see at least one day this week where UVXY creeps into green... it's been nothing but red all week. Just one day... today would be nice.