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!
Contango, resilient market, dovish fed, all point toward a downward spiral of VXX. VXX has performed well this year considering the raging bull market 1st half and now resilient market with big money in the buy on the dip mentality. I transferred more money from my money market/ bond fund to large cap fund on Wednesday as market tanked, and will enjoy the rewards of making that transfer later tonight when my retirement account updates showing the marked gains from todays rally.
I expect some deep declines in VXX over the next few weeks, with all VXX longs singing the contango blues!
You see. VXX is not going to get to 30 and UVXY will not go to 150. It is just bad thoughts in your head that lead you to those ill conceived conclusions. You think everyone is in a panic, when the only fools that panic in the long run are the fools holding VXX long in their portfolio.
Ok. I wait for UVXY to get to 150, then buy puts. This is what you are telling me. And you promise not to advise me to wait until UVXY hits 300, once UVXY reaches 150?
I am literally fully invested with UVXY shorted as a hedge. UVXY has certainly capped my gains on my short position in marrket. But, I am looking for the rapid fall in UVXY that is soon to follow. With UVXY, the saying goes, what goes up, has to come down, and it will. I may have to get creative with my trading account so that I may buy some puts in UVXY at this level!
I doubt that there will be any sustained rally in volatility. We are simply back to normal type market behavior where we have occasional up days, and down days. And, some out right boring flat days.
The fear of fed shift in policy will keep the market from rallying endlessly. But, the lack of inflation and apparent stability in Eurozone stifles any lengthy correction.
Will have to simply wait for something unexpected to hit the fan before any big pullback in the market. As for VXX, expect to see a significant pullback today if the market is resistant to giving up early gains after market opens today.
Problem is figuring out that someone is loony before selling him or her a gun. Who would have ever thought that the crazy actress sending ricin to the president would do such a thing, before the fact? Would anyone have denied allowing her to purchase a high powered rifle or semiautomatic rifle, before this event?
So many of these lunatics are average looking and without backgrounds that would necessarily raise red flags.
What is ironic is that it is very likely that the criminally insane folks are cheering every day that the NRA get their way. And, when those insane deviants buy their weapon of mass civilian destruction, the NRA ring the register for that sale, then use the tragic event to advertise to the fearful citizens, trying to get them to buy guns in order to protect themselves.
BenB and todays fed listening and heeding to what Greenspan has to say, would be like Obama seeking advice from Bush regarding how to handle Syria or Benghazi. Of course, Bush would have a quick answer for Benghazi, "wage war on Iran"
Greenspan is stiil trying to convince the world that he had nothing to do with contibuting to the great recession. It happend on his watch! All of the proverbs in the dictionary cannot get him out of that. His obsession with fear of inflation even when non-existent makes his opinions useless, although he remains a bit entertaining to listen to.