We;ll get the chance to find out because thanks to the Fed the economy won't recover for many years. I don't expect this would hurt stocks much as nobody has believed in the recovery for some time now.
Well, I don't think it's rocket science at this point. Nobody seriously believes we have a healthy economy or that stocks are a good buy. It's just that the Fed will never raise rates, so there we are.
SVXY plays with your taxes because it's a partnership. Anyway, it'll be $50,000 per share in 5 years.
From your name it looks like you've been waiting since 2012. Do you even understand how VXX NAV is calculated? How high are you claiming it will go? I'm sure I will choke in derisive laughter when I hear your answer.
Good luck to you as well. Right now my plan is to cover VXX when the spot VIX prints say 7 or 8, then look at buying some calls. Any corrections will be brief. It's my opinion the Fed will not raise to 2% in the next 85 years or more. So what do you think people are going to do? They can't just hold cash, bonds are even more overpriced than stocks, so stocks go up forever. I mean literally forever- there will not be another down year in US stocks. I sincerely believe that. Otherwise you couldn't have a market go straight vertical for 6 years even with valuations truly obscene.
Oh it can double in the blink of an eye huh? And just what do you propose is going to make that happen? Maybe it will double if the VIX gets down to 4 or 5, but at these high VIX levels and high futures, forget it. This is going to 50 cents in a year.
1000 shares, no biggie. It'll drop 90% pretty soon. Did you see the futures spread over spot? It's going down big. If we see the VIX at 8 or so I will look at some long term VXX calls to hedge my growing short position. At times I have been 250% short VXX plus calls, now I am only 125% short and some calls. I expect to add tomorrow, hoping for a tiny spike after jobs report maybe back to 27. VXX will never hit 30. Never. It will hit 50 cents in 2 years. You won't see the Fed get to 2% rates before 2100- that's right 85 years. They're all in now. It's a disaster for the real economy but wonderful for stocks.
All that stuff is out the window. Only threat to this bubble would be if Fed normalizes rates. They cannot and will not do this EVER. Not ever!
License to print money shorting it.
My honest opinion- S&P will put in 100 consecutive up years. This is only our seventh consecutive up year for stocks so we got a heck of a long way to go.
I doubt you made 11K, or even 1K on LL.
Are you willing to bet whether this will ever get back to 3? I have been shorting since 20 and am telling you it will not hit 3 even if a nuke goes off.
Spot VIX can double, VXX will nowhere near double. You would need spot VIX over 40 now for VXX to double. Tell me what is going to cause that when everybody already knows stocks are in a bubble and the economy is in the toilet. That's not nearly enough to cause a correction.
The market is no longer a discounting mechanism or anything that reflects reality in any way. It goes where they want it to go. They want it to go higher because it is a policy tool at this point, just a way to transfer more wealth and power up the social ladder.
Never. that means stocks cannot fall. Plus, you need a real panic for this POS to rise. Look what happened yesterday. Now in 3 days the market is down a decent chunk and this is way down.