I think Wes is spot on with housing. I am out there trying to buy more houses now, and what had for sale signs up 2 months ago, no longer have for sale signs. Bargains are getting harder to find, and no problem renting out the homes I own. I haven't flipped any properties yet, but will likely flip the next 4 or 5 houses that I buy with the way this market is gaining momentum.
Strong housing market fixes everything. The economy is good for the rest of the decade if housing recovers. I may even go long the market with my trading account if a few more convincing housing reports announced.
VXX is trading in a bizarre manner. I wonder if there are just so many traders now in on the trade that traders rather than fundamentals are determining price range.
At this time, I am anticipating better returns on my real estate investments than my trading accounts and retirement accounts, at least for the next 2 to 3 years.
Not exactly in a crash market. We are simply in the middle of the correction that this bull market has needed for some time. Of course, the market always has a way of correcting in a manner that make many panic and start running for the hills.
It is such a pleasure being short the market in general when these panic market moves occur. Also creates incredible buying opportunities. And, in the case of VXX, the opportunity to short at this level may be what future new money whales will be made out of!
I will be building my VXX short position with you! I will stick with VXX this time, rather than UVXY. Never know when UVXY shares might not be available for shorting. VXX shares are typically available. I am not sure whether my account will go up or down today, will likely stay neutrall at the open, I have almost equal amounts of long and short positions. My trades today will be important, hopefully I get the direction right. Question is, do we bounce at this level, or are we in for a freefall!
Sorry for crashing this message board. I thought that I was posting on the VXX message board. At least I got a reply. I think most of the VXX posters have me on ignore. Life is still good though! Making money!!!
Sounds like a little swing trade maneuver. He says his hedge exploded, he then dumps and runs.
Thats what most people do with VXX and UVXY, and why there is incredible downside from here.
VXX may very well go up more, if market selling continues on Friday. But, the plunge down will be horrific for longs, if the market rebounds on Friiday, which has been the market theme this year.
Sleep well tonight, Friday may be a rude awakening for long VXX/UVXY holders!
I had to exit my UVXY on Weds because since reverse split interferred with my gisplay. Brokerage firm said could not correct data until ?shares received. So I bot to cover, with intent to sell again, in a day trade manner, then, would'nt you know it, no UVXY shares available for short sale.
I was ticked. I then shorted a small amount of VXX to start building a short position in VXX, since UVXY was not available. Big pay off today, so with huge down day, and great return on my market short position, I sold shares of VXX througout the day. Position still smaller than what I had built up with UVXY, but, now significant in size, I will short some more Friday, if we have BLACK friday.
I made more trades today than I have in the past month. I great day to be a trader, on the short side!
Right! A sell the news kind of day. That is what I have been trying to get through to folks posting how resilient VXX has been for months despite market being in a relentless bull run. It all evens out in the long run. And, as happened today, a market selloff at these levels actually is soothing to the market, because well overdue. And with each selloff, there will be less and less market anxiety as long as the selloffs do not result in panic bailing of positions.
We rarely have a market like this, and traders need to pay close attention to what impacts the VIX and VXX, if trading volatility. Shorting the market is a lot easier. I now rarely swing trade VXX. I mostly just keep short position in UVXY to hedge my market short position.
I repeat, short VXX/UVXY is a great hedge for a trader who is short the market. It doesn't get any better than today. This is the american dream! A great day for this trader! Way to go BenB. Sock it to the market with your QE or not to QE. Now, any growth in economy will result in market selloffs. If the housing market gets on a roll, which is happening right now, expect a little volatility.
But, as the market tanks, does not necessarily mean that VXX will rise! Just keep that in mind, and recall what VXX did today!
The difference between VXX reaching 25 vs 17 is that 25 could be reached if some unusually horrific market wrecking event occurs sending S&P into a tailspin, which has low probability of actually occurring, but "could" occur. VXX reaching 17 however, will occur, and nothing out of the norm necessarily must occur to make it happen. VXX will eventually trade at 17 and below. It is just a matter of time.
The June chart is looking very similar to April chart for this year. I would anticipate further downward tanking of VXX and UVXY from here, near term and long term.
The fed could cause a transient blip up if something unexpectedly negative comes out of meeting today. But, we all are aware of that. All we can do is sit and wait for the outcome. My guess is that the market will remain flat after the meeting, because many are expecting a wild move in the market, and probably lots of straddle spreads, but those spreads will end up losers when market shows lethargic response to the meeting outcome.
If referring to VXX as flatlined, that is easy to understand. We have been at lofty market levels relative to last several years, and there is still fear of a marked pullback. With talk of cutting back on QE, the market stays in "nervous" mode, even as it bolts higher and higher. The market keeps rising because the "Doves" rule the fed. That might not change for a while, so market may continue to trend higher for the rest of the year. The market will stay nervous, but as it continues its trend higher, VXX will continue to trend lower.
gotten out of my short the other day, but I would have made less money. And I could've bought to cover yesterday, but I would have made less money. I could close out all my UVXY shorts today, but no, cause I'm a short UVXY boy, just a short UVXY boy. And I'm getting richer every day!
Funny how you can see that short correlation, and it makes sense to you. Yet you cannot see how over time, VXX has submerged so deeply underwater with contango burying this deeper than a union leader hanging out with a mob boss.
In the long run, who will win out? The longs have to be great market timers, and make their purchases right at the bottom and get out on a midday spike to make money. Shorts just have to have patience.
And, VXX is still in the red! I would not be surprised to see the Dow end in the red, with VXX stll in red or flat at best. Nothing like being on the right side of contango.
If you did so well shorting VXX this year, and know that it is a pig, then why hold it long, and give any of those gains back.
Just stay short, keep making money. That's what I am doing. You won't ever find me going long VXX or UVXY. I stay short bull or bear market. Short 'til the sun don't shine.
Blame it on the Mafia, blame it on the Mob. Blame it on Molly, blame it on my Mom. Blame it on Me. Yea Me! But whoever is to blame, VXX is still going down. And, contango will make it go down further than you think. Blame it on mathematics!