Just keep in mind, Hummers drop in value as soon as you drive it off the lot. The only purchase that may drop in value faster than a Hummer is UVXY!
It only took until lasttrading day in May, to finally get a decent down day in the market. I, of course, failed to keep my word with buying UVXY puts, but did sell more UVXY shares short, and solidified my core short position a tad bit more. When UVXY goes back into meltdown mode, I will reap the rewards. I hope Monday is a nice plunge downward to compliment todays downward market move. And, why mot have a string of down days in June to give all of the Bulls out there a taste of what the Bears have experienced for the past FIVE months. Regardless, with rumors of an inevitable wind down of QE, we will at least have a volatile market this Summer, if not an all out bear market. The least likely scenario is a continued unidirectional bull market with only rare pullbacks as has occurred the 1st half of this year.
I like volatility. Makes a trader like me profitable!
You are right! But, FMN would have to gain over 400% for me to break even, if I had held the position all of these years.
No more straight up market action. Back to Fibonacci market patterns. May be some great opportunities for shorting UVXY or VXX. I am shopping for puts now. Got a nice core short position now, and currently in the green. Now will buy puts for trading with significant pops in UVXY. I doubt will be a straight down market correction. Expect lots of chop ahead.
Shorted UVXY at 6.04. Next short level 6.10 and then 6.20. I doubt that I will get the opportunity, but if happens, I am on it!
Too many traders waiting for a market correction. Will be many headfakes before correction occurs. The best short is shorting UVXY or VXX with any significant pop higher, like today!
Now, we are all aware of the fact that a split or reverse split has no impact on the value of ones investment.
But, when your investment gets a reverse split of 1:10 consistently every 1 to 2 years, and sometimes a reverse split twice in a year, that has to have some meaning.
I am a happy holder of shorted shares of UVXY.
Keep watching. It will come down. Take a brief nap, then look at your computer screen. VXX will get closer to 17 if the market keeps trending higher. VXX can move quickly. So today price may be held higher by a market maker for a longer time until convinced that the market will be continuing higher. Makes it harder for the daytraders. Then, in a blink, VXX will lose the majority of the gains it currently has.
I am making only tiny trades now. Only building up my core short position in case we don't get any major correction in the market this year. I would hate to go all year waiting for a market crash and not have any money working for me, and the market just drift up and down for the rest of the year.
I have partially and completely sold off my core position this year for profits, then rebuilt position multiple times. I do not recommend completely selling off core short in UVXY, but I have been lucky this year and have been able to rebuild the short position with better prices every time that I have done this.
I don't sweat the trades that I am making now at all. It is when major volatility hits and clearly has legs like when the PIGGS were failing, when the UVXY trades make the hair on the back of your neck stand straight up.
I am looking forward to the next big market selloff. This straight up action in the market this year is adding plenty of fuel for a major market dive. Just must be patient. With talk of winding down QE, it will happen, just a matter of when!