VXX is an ETN that reflects volatility. Long term it is a great short. But short term there are some situations where it is a good long. If the market has just had one of those very big days (yesterday) where you almost know that gains will not hold, VXX is a low risk buy, unless you believe the market will have another big up day. If the market pulls back significantly, VXX goes higher. Even if the market is flat buy people remain nervous, VXX can still move higher. Look at the long term charts on VXX and be amazed. Because VXX moves lower and lower over the longer term, it is possible also to make a great profit on the short side. The best time to do so is after a significant market correction when VXX spikes and you think the correction is about done. At such times VXX craters and can fall very dramatically.
Sorry to put the above on the FEYE board, but it is worth knowing about. Short term Cramer suddenly calling FEYE "the sweet spot" of the sector should help us continue higher, but ultimately upcoming earnings will dictate where we go. We can even handle a slight disappointment IF guidance is strong. Good luck to fellow longs.
Yes, volume looks great. Yesterday I was criticized for suggesting buying on the morning dip. Those who did are already up over $2. Also suggested buying VXX as a hedge--it's up over a buck. I'm not quite as bullish as you, but definitely bullish re the future of FEYE.
It definitely is possible. Unfortunately, the stock appears so manipulated that it could also be trading at $30 by that time. I think we see an analyst come out before earnings and encourage investors to buy going into earnings, and a meaningful rally start at that point. But if we don't beat the whisper OR fail to have strong guidance, we will fall like FTNT did today. Most potential buyers are waiting on the sidelines in "show me" mode IMO.
skipper--Can you post that again tomorrow? Hope you're feeling better now. If you want to play with the dark side a little, take a look at VXX. Whenever the market has a big rally like this it gets crushed. Over the long term it will go lower and lower. But the premiums on calls are very high, so that you can buy VXX as a market hedge and sell the calls. For example, let's say you can buy in the morning for $33.50. You can sell the $34 calls a week out for around $1.40. If the market pulls back your VXX gets called away and you make over 5% in a week. If the market rallies big VXX could fall as much as $3-$4, but then your long positions would hopefully more than compensate for any losses. But, odds are you will again have volatility in the near future and could sell the calls again or unload the VXX when it rebounds. This is not a strategy for anyone who believes we are headed into a very bullish period, but works well in periods of volatility.
wolf--That was the bounce I was talking about. I think our disagreement was from talking about two different things. I was saying an intraday bounce was likely--you're talking longer term.
wolf--FEYE often rallies after looking ugly in the morning. I'm not really trying to pump, as I don't expect much--just think we see some rally off the lows. I'm long but think "hogs" nailed it yesterday with his comment---"This stock is a basket case and the price action is highly suspect imho." I totally agree that the price action on the stock is very suspect. And as long as you are talking about "factual basis", "emotional desperation" is way off the mark. Long term I think the stock will move higher, but have no clue when. I'm hoping that will be post earnings, but hedging my bets as I'm not convinced of that. You sure you're not short?
Totally caused by being so deep in the money. If you go even deeper, you are essentially buying a stock, so little to no premium. Also a demand issue. No one will pay a big premium if they have to spend that much to create a position.
I'm bullish too, and although volume looked good earlier, it only finished at average levels. But, as long as we keep moving up, I'm happy.
His message is annoying, but his headlines at least are entertaining. Soon he will either disappear or switch to the long side and expect us all to believe he bought shares cheaper.
Somehow it never is easy when one expects it. Hope you're right. I'm in for the long haul unless something changes. Having a great day with LOCO and FEYE today. Good luck to all longs here.
This is one of the more erratic stocks I have seen. I looked at my phone this morning and saw a nice start slipping away, as we were only up .18. I looked a little later and we were up $1.40. Very strange and wonderful. Assuming certain funds have been quietly accumulating and are now ready to move higher, we could finally take off significantly. I still believe some major analyst comes out just before earnings and says to buy going into earnings. Hope I'm right.
There are plenty of oil related stocks that have suffered similarly. The worry is that with oil prices dropping so dramatically it won't be cost effective to recover oil, so it will just be left in the ground until prices go back up. That could be years.
Nice trade. I thought it would pull back also, but sold covered calls instead. Your way is safer, given what has happened to so many oil related stocks.