I just tried to short TVIX again today just to see if Fidelity would allow me to do the trade and it would have gone through but I canceled it because the optimum time for best profits has passed for this trade. I just wanted to check if shares were available to me and they were.
My account settings must be different than yours. But I have signed a lot of paperwork that allows me to do just about anything I want to do so long as it is legal. And I have called them several times informing them that I want my trades to go through without having to call in to authorize such conditions as interest rate charges on borrowed shares. It seems that they have that configured into my account settings now so it is automatically authorized. But I do get a warning informing me of the interest rate charges.
Keep in mind that the interest rate charges are mark to market so the amount borrowed is based on the market value of the stock or ETF at the time so if you short wisely then the interest charges decline with time. Now days with low interest rates they are pretty negligible.
One of the reasons I moved my money from TDAmeritrade to Fidelity is because TD was gouging me on interest by charging me way more than fair market rates where as Fidelity was charging me a fair market rate. TD got greedy and lost my business. In the end they will lose more because of that than what they ever made on over charging me interest. This is a case where the rich are going to make less.
I went short TVIX and long SVXY on Wednesday and bought back all my long positions on Friday. I was sweating it out Monday morning but nothing happened all day. Now today I have gained some padding. I could have been wrong. You never know.
My TVIX short position is on it's way to zero. Go look at the two year chart if you don't comprehend that statement. I plan to add to it and I am not worried about covering. If I get an idea that the ^VIX will increase then I will cover and do a repeat. If I don't see it coming then I will just ride it out as eventually TVIX goes to near zero, relatively speaking. Every $10k I short on this ETF I consider that it be free money that I will never have to pay back eventually.
Currently long: BA, BEAV, PCP, LUV, GILD, KORS.
SVXY is a long position but it is a short ETF so that doesn't count. I could have put all the SVXY money into shorting more TVIX but SVXY is a safer play because I cannot lose more than I invest. You can make money buying SVXY but you can get rich shorting TVIX if you mitigate the risk. Its free money.
Hopefully the market will not reverse and wipe out today's gains. I must admit that I am biting my nails because you never know if the market is actually reversing a trend or doing a fake out. Only time will tell.
That said I think they should raise minimum wage but only if they force employers to use E-Verify so that it does not cause unemployment among US citizens.
I forgot to mention that Pope Pius in 1950 said that there is no conflict with the concept of creationism by a god and evolution. It seems that the Catholic Church has evolved its philosophy to keep up with the modern understanding that comes with scientific discoveries. The protestant churches on the other had have stubbornly held the line claiming that the biblical timeline is accurate and that there was no evolution of man regardless of the massive amounts of scientific data that says otherwise.
What this shows is that people can be twisted into believing anything so long as you tell them they have to believe it or they face damnation.
I cannot believe that this is true. I understand that Obama is not the sharpest tool in the shed but no one is that dumb. Was this story reported by a major news agency?
This is my biggest problem with the Republican Party in that they accept religious morons into their fold because without their support they cannot win elections. However I can live with this if it allows the party to fend off the efforts by the left to redistribute ever greater portions of our incomes.
Even the Catholic Church has admitted that the beginning of our universe started with the big bang and to look at the bible in the context of what people understood at the time it was written.
We can currently see light from galaxies that are 14 billion light years away. This means that light from all the galaxies in our universe has been traveling in all directions for 14 billion years. Because if that is not the case and someone created the universe say 15k years ago then that entity would have had to create light waves moving in all directions as if they started their journey 14 billion years ago. So why would he do that? Would he do it so atheist like me would have a reason not to believe in the biblical timeline so we could be tricked into thinking that the bible lacked creditability? Would it be some silly test to challenge intelligent people to be damned for not ignoring scientific facts and believing in a deity based on faith alone? Would this suggest that they have a god that only wants to save people who are either ignorant or have been indoctrinated with the use of fear into ignoring the oblivious to avoid incriminating themselves as a nonbeliever?
The Catholic Church admits that the biblical timeline makes no sense but they too are not promoting this openly because they don’t want to create a controversy with other Christian religions. But they do admit it in intellectual circles none the less. After all, the scientist that came up with the big bang theory was a priest and Pope Pius praised his theory as a confirmation of the Catholic belief in creationism. So much for the protestant reformation as it seems they have digressed.
If you sum up all the temperatures from all over the planet for a year and take the average one finds that this average temperature is almost constant except for a slight upward creep for reasons that are controversial. However one can get variations in local areas from year to year so if one part of the world is colder then another part of the world will be warmer so that they average out.
I am a Republican and I believe that global warming is occurring. I also believe that CO2 is a green house gas. What I don't know is if this upward change in temperature is predominately caused by C02 or by the precession of the earth’s orbital axis with respect to the sun which also has influences on global temperatures.
However I also believe that neither the right nor the left has an accurate position on this issue. I think the left is over jealous and the right is over pragmatic and I believe this is because they are doing this because they feel the need to be in opposition of each other so they over compensate their respective positions.
In my mind the logical thing to do is to recognize the relative merits of each position on this matter. That is to recognize that green house gases could be partially responsible and other causes out of mans control could be contributors as well. And then to recognize that if this is the case then having energy policies that encourage energy production that emits less green house gases is probably a prudent thing to do as long as it doesn’t impact the economy which I believe can be done. However I think that the way the Democrats have been going about it of late where companies who politically support Obama get contracts isn’t the right approach. I think that giving companies tax incentives so they choose on their own to invest in greener energy sources is the right approach because it promotes green house gas reductions and it doesn’t play political favorites. The latter was Bushes approach. I agree with it.
I did not disagree with your post and I am a Republican.
They are just longs who are reacting emotionally because they don't want to hear anything bad about a stock that they own. And normally I do not associate such behavior with Republicans who tend to be more pragmatic than emotional but that is my opinion.
I interpret emotional out lashes as a sign of low intelligence or immaturity. Intelligent and mature people can control themselves from having such outburst and realize that they are pointless as they actually achieve the opposite of what they had intended. This is why you see a lot of this behavior from adolescents who have not learned self control. And this is why you don’t throw adolescents in jail for having fights because it is understood that they have not yet matured to the point of controlling their emotions.
But some adults learn to quit fighting in order to avoid jail time but then turn to using harsh words as a weapon. Their violent and aggressive behavior simply gets transferred to another way of expressing their emotional outburst in a less physically destructive way in an attempt to extract emotional damage instead as they feel a need to do some kind of harm to others, if not physically then emotionally. They really didn’t mature to a point where they exhibit self control in the presence of controversy. They just learned how not to get thrown in jail. It’s not the same thing.
But I would not be in favor of a law that punishes people for emotional aggression. Some people would explode inside if you could not give them this one form of release. We just need to be patient with them and be glad it is them and not us.
This is why I don't buy it now because even though I think AGNC stock price decline has plateau for now, I am convinced it will start to decline at some point in the future and I really don't want to play the greater fool game when I can make more money doing other things where and inevitable price decline is not looming overhead.
I would not ask that question the way you phrased it to anyone who served in Middle East or to any parent whose child died there if you value your life. To them you are #$%$ and it seems ridiculous to me that you would use them to defend an argument that you want to make when they would choose to exclude you from their association permanently.
You are like the guy who shows up to someone’s funeral and proceeds to talk about all the bad things they did in their life as if you are clueless that they would not want to hear it. And I am sure that you did not even realize how obnoxious you are to talk about the pointlessness of the service of people who died for their country. My guess is that it never occurred to you.
The left has gone off on a tangent. Most Democrats from 60 years ago could not relate to their party anymore.
Today the right is considered extreme because of its views on religion and abortion which I personally disagree with but 60 years ago even the Democrats would have been comfortable with these views.
Kennedy lowered taxes to stimulate the economy by giving investors a reason to invest as apposed to tying up their money in ways that sheltered them from taxes but did nothing to help the economy. As a result of Kennedy's actions the economy rebounded. Today this kind of action would be out right rejected by the left. I don't think it is the right that has changed so much rather it is the left. I'm not judging the benefits or lack of that this has created I'm just stating that if you go back in time you will see less change in the Republicans than Democrats so it makes no sense to me for anyone to say that the opposite has happened.
My guess it is simply an expression of the lack of cooperation in congress between Democrats and Republicans with the blame being put on the latter. In my mind the Republicans are doing exactly what I want them to do which is to try and prevent the Democratic Party from transforming the US government into something more socialistic. In my mind they should not be cooperating in this endeavor rather they should be trying to block it every way they possibly can. I would be pissed at them if they cooperated with this.
Its the exact same interest rate they charge you when you buy stocks on margin. It's not that much and that was the reason I told them that I didn't want to be bothered by having to call in for authorization. It was more important for me to get the order executed immediately.
Also, the interest charged is based on the value of the stock at the time. It's called marked to market. So as the value of the short goes down the interest goes down. Every week or so they recalculate the value and based on that recalculate your margin debt. In your history you will see marked to market adjustments being made on a regular basis.
Any stock worth shorting is going to have a high short interest and thus it will be hard for anyone to borrow them and thus they always charge interest for stocks like that.
I have no problem finding them. I use fidelity. However I used to have a problem with shorting just about anything tjat was a good short. I always had to call in to have them short anything for which shares were hard to borrow and I complained. I told them that if I could find another broker that would make this easier to do then I would switch. After that when I tried to short shares that were hard to borrow it happened automatically.
You have to pay interest on shares that are hard to borrow because they have to go to other brokers to get them. I think what was happening to me before is that they wanted me to call it to make sure that was OK to charge interest. I told them that from now on I wanted them to assume that this was OK and they seem to have modified my account settings so my shorts go through online no matter what. Since then I can short just about anything and it is never a problem.
And you are right. You never have to cover a TVIX short. It eventually becomes worthless. Every year or so they have a 10:1 reverse split. In time older shares will reverse split to nothing in which case you will be forced to buy 1 share to cover. A small cost for the perfect investment. However if you keep shorting more every time the VIX goes up then even that won't happen. Every time you short $10k of TVIX you can consider it to be money for nothing but chicks are never for free. Never have been, never will be.
It's a good thing that Lincoln, a Republican, abolished slavery.
I see owning a slave as an infringement of individual rights, and it is individual rights that conservatives spend most of their time defending. Liberals on the other hand seem to spend most of their time trying to infringe on people's rights using "the ends justify the means" argument. I think you have it backwards. Tax payers are the modern day slaves and it is the liberals that have created this modern form of slavery. I cannot choose not to pay them. In fact I have to make sure that I save enough so in retirement I can pay them until I die.
I cannot choose not to pay taxes or I will go to jail which is the modern day equivalent of torture because being placed in an environment where you have to kill to keep people from sexually abusing you and in so doing giving you HIV is torture worse than water boarding. If you asked me to choose between 10 years of jail or 10 days of water boarding I would choose the latter with little thought. The choice would be obvious and immediate.
What is thought of torture has become an intellectual argument but when an individual is given a choice between torture or as an alternative a common form of modern day punishment and he chooses torture instead I think the creditability of those making these arguments comes into question. Obviously the argument is not about what is really worse but who you are blaming on using torture at the time and thus the motivation to paint it as the worst act possible. But then give any prisoner who has to go to jail for 20 years the choice of picking torture instead and most would pick torture as an alternative because living without freedom is worse than torture. Obviously this argument is political because in reality what people choose when given a choice says that it is not the worse kind of punishment that we use on people today.
They didn't do it intentionally. I'm sure they did not understand that all those subprime loans would start going into bankruptcy as soon as people could no longer refinance down to a teaser rate they could afford instead of the reset rate they could not afford because the value of their home would no longer allow them to refi. I am certain that the Democrats never gave this a thought. They should have been thinking about it but I am certain that they weren't. To buy the votes of all those subprime recipients they didn't have to think about consequences. All they had to do was to change lending regulations so as to make sure that the product was available to poor people and not worry about the consequences. Consequences are not part of the equation when it comes to buying votes. After all, they can get their constituents to deny that the consequences had anything to do with what they did by transferring the blame to someone else. Obviously this strategy is working very well for them. Just look at you guys. Obviously it's working just fine.
I shorted 3000 shares of TVIX at around $11 and I bought 1000 shares of SVXY at about $51 and my only regrets is I did not do more.
TVIX is not down to $7.71 and SVIX is up to $60.45. It's all good.
The people who said that money does not grow on trees were wrong. This is free money. If I believed in god I would thank him for the people who are on the long side of this trade so that there are shares for me to borrow.
BTW, I am long the market again. At least for now. I didn't perceive a reason for this correction to go on much longer so I got back in. In the coming days I will reassess and if I determine that I was wrong to do so then I will reverse my decision.
I often ask myself why do people miss out on opportunities and I have concluded that it can be summarized in one word. Indecision. When given the facts they either lack the ability to formulate a plan of action or they lack the confidence in themselves to trust their own judgment and thus they decide not to pull the trigger.
What is the point of watching the market if it never leads to a decisions. Absolutely no point. It is a total waste of one’s time in that case.