all it does is reset where the product is pegged...if you'd been around for the last few years here you'd know that huge backwardation results in a monster drop and you should have been short already!
now we're getting to stupid levels of selling...buying puts out a few months. expect a 70-80% drop by December...if you believe the world is not ending because the fed is hiking by 0.25%!
there's huge danger in being short. that is for sure. the long unicorn (600% in tvix in 2011) is a creature that we won't capture until the world goes into recession. we are far from recession. the Fed is stupid with talking rate increases when there's zero inflation, but there's politics involved there. old people want high savings interest rates and they can't get it...buy some exxon and sit back and don't worry about retirement with that 4+% dividend that's averaged 7% increases annually for eternity!
nav closed at 33.12 yesterday. you know this will be short-lived just like all other freak outs the last few years. there was too much bearish sentiment going into this selloff to have a long shelf life. this iran deal may fall apart in the next week or two and that will send oil and the market up.
Short with hedge...and I see trailer trash is still talking about my Cvx and Xom shares. Long and strong big oil! Painful but not ever selling. Know the difference between ira investing and taxable trading trailer...
there it is. shorted heavy at the close, fully hedged. short vxx too. looking for negative open tomorrow and short covering later in the day, probably after an hour or so of being open the market will turn up. doesn't matter though, short until we get back to 14s on the futures. we're over 17 btw, and we will go into backwardation tomorrow at the open most likely which has been a great signal to sell vix for the last....since the beginning of vix futures!!! good luck suckers!
buying uvxy can be a great move for some people...remember, to short you need longs. trying to convince people to short is pretty dumb when the brokers have huge borrowing rates and sometimes no shares available...
got started right after that correction with tvix and have been printing money ever since. there's been doubles since then and lots of 50%ers, all about hedging risk. these are losers. we're in a bull market, when oil starts rallying, we will see sp2,300 this year.