Britain is just upset over the way the EU central banks mishandled the 2008 financial crisis and the bail outs that came later. If the EU did not exist then there would be separate central banks and low productivity socialist countries could devalue their currencies allowing themselves to compete against higher productivity countries like Germany. But if you use the Euro as your currency then you are locked in and when your unions inflate wages you can't correct the uncompetitiveness this creates and your economy contracts. The EU is not good for everyone in the EU. It is only good for the more productive economies that can eat the lunch of the less productive economies because these lesser economies have no means to correct their uncompetitiveness since they are locked into a currency they have no control over. What you are seeing now is actually a good thing. A EU without a common currency would solve this problem. That is where I think this is headed. Basically an EU without tariffs but with separate currencies. Still a union but able to correct valuation imbalances so each country can compete.
First off brexit doesn't go into effect for two years which is irrelevant as far as TVIX is concerned. Second European investors will flee to the US market seeking stability. Any impact that this could have in US exports is so far out into the future that it is also irrelevant as far as TVIX is concerned. All you are seeing now are people concerned about what might happen in the future but that will eventually get over shadowed by current events that are actually happening or not happening, which is even more important. High volatility is always temporary. Anyone who doesn't short more than 10% of their account will be fine. Don't get greedy and you will keep making steady profits as always. Get greedy and you may regret it.
I shorted UVXY instead. It tracks TVIX precisely so it's the same thing. I think all the people who know about shorting there volatility ETFs are jumping on board. You need to be fast. I should haven known that premarket was bull. It always is. Should have shorted then.
You do the opposite of what the people who make money do. You bought after the event. That's not how you make money. Unless you are shorting. Then you can short after the event.
The shock of the even is over. But please buy more shares so they will be available for me to short because the other shorts already borrowed all available shares
Markets are just shocked. Nothing more. And now they are realizing that this doesn't impact the profits of companies so it doesn't mean anything.
Because these events that shock the markets like this that have nothing to do with us company's profits don't last. The markets are shocked now but that's all it is. No one believes that this is the start of a recession or anything like that. And traders are just reacting to an unexpected event but most are too late to make much from it.
This will be a perfect time to short more because tomorrow us companies won't be impacted by this. It's just a reaction to shocking news. That's all.
These are exactly the kind of events where I short more because they don't mean anything in the long term. All that has happened is the markets have been taken by surprise but in a short while it will be accepted as an event that has little consequence on the world's economies.
TVIX is referred to as a "hard to borrow share". So if you haven't signed a document that allows your broker to charge higher interest for hard to borrow shares then you will need to call it in and have someone at your brokerage manually place the order. I think it is easier to sign the docs myself. After you do that the shares automatically show up as being available. I use Fidelity as my broker.
keep in mine that TVIX has no intrinsic value so I would not assume that once it goes down that this would be a reason for it to go back up.
What happens to TVIX then? Sub $2 I'm pretty sure.
Most people are Republicans for one reason. They don't want the Democrats to take taxes from Republicans so they can give them to other Democrats. That about sums it up. All the other issues are marginal by comparison to the impact on peoples lives. Republicans basically want to let people live their lives as they chose within reason and Democrats want to move money around in a way that favors their constituents and thus ensure their vote.
Democrats support pension spiking by government workers which no one thinks is ethical. But they support it anyway even though it rips off everyone who is not a government worker and causes local governments to go bankrupt when the corruption grows beyond tax payers willingness to pay. That is what Democrats support. Show me a Democrat that runs on cleaning up this corruption. You can't because they don't want to clean it up. This is how they buy votes. What Democrats do is try to frame it so it looks like nothing wrong is going on, usually by confusing the issue. And what is stupid is if you buy into this manipulation which only favors the politicians and the corrupt government workers stealing our money.
I find it interesting that the people now trying to get the middle class jobs (manufacturing) back from China are the Republicans. There was a day when Union workers looked to Democrats but the Democrats are throwing them under the bus with talk of open borders because these impoverished immigrants all vote Democrat but take their jobs at low wages. But what about their current constituents? That doesn't seem to matter to them anymore.