This is the title of a very detailed Seeking Alpha article which discusses buy and sell indicators for UVXY. In case you have not already read it, you should find it relevant to what everyone here is discussing.
has been very similar for the past week. Now all TWTR needs is a buyout rumor like what is happening to YELP.
What do you of this comment about the 0.15 fee:
" the long Spot VIX, or VXUP, comes with an additionally 0.15% daily expense to help pay for the short Spot VIX, or VXDN – due to the nature of the VIX, the investment is pretty much guaranteed to go up some time in the future but a short position is also likely to lose money, so the daily fees on VXUP is used to compensate those taking the risk of going short."
BAC appears to be making another run to 20. Is it going to make it this year?
As a long term play with minimal drawdown, I am holding the Jan2016 20 calls.
The Jan2017 20 calls also look good.
I came across this trading observation from a Youtube video about short term trading. The author said that if there is a market dip on Thursday the week before the monthly exp week, then there is almost 100% chance that the market will be higher on the monthly exp day. He had backed tested this to obtain this result.
Anyone hear about this? Maybe it's worth a try. Buy the dip this Thursday (June 11) and sell next Friday (June 19).
At today's closing price of 52.60, you could buy the Oct 48/40 put spread for a debit of around 2.00
This would give you a potential max profit of 300%. Options provide you with limited risk, unlike shorting shares which has unlimited risk. One advantage of spreads is that you could close out your spread with very limited loss should the shares continue to rally.
Also, tomorrow is ex-dividend date for SPY, DIA and QQQ. To qualify for the dividend, you only have to buy it one day before the ex-dividend date. Maybe this is the reason for today's market rally. Basically a redistribution of the portfolios by the large funds.
"The Stock Trader's Almanac says that the "summer rally" in most years is the weakest rally of all four seasons. The week after June Triple-Witching, the Dow has closed down 21 of the last 24 years."
Historical statistics is on your side. However, there is always the possibility this year may be different.
Everyone including the guests on CNBC Halftime is saying this is the start of a new market rally. Even Joe Teranova, who has been bearish, is now bullish and think the financials will lead this new rally.
They should have announced a 10 for 1 split, instead of a 7 for 1 split. This would put the share price at around 70 with some room to quickly move up to 100, since 100 may prove to be at least a temporary psychological barrier.
I cannot imagine the Fed doing anything dramatic before the end of this administration which would result in a bond/stock market collapse. But since I think there will be a slight bias of interest rates to the upside, I am trading TBT from the long side.
At 10.52, Icahn is now down around 618 million. He needs for this to move up to 19 just to break even.
In order for one to have held the position from the first day until now, you would have had to been short 12,000 shares. After the last split, you would end up being short just one share. I agree that just being short the shares is a very risky strategy. Put spreads may be the best way to play this.
Last month, I had posted a strategy I had found on YouTube. The strategy is to buy the market lows on Thursday, the week before the monthly option exp. The market should be higher the following week.
Has anyone heard about this strategy?
The author had back tested this and it appears to be an almost sure thing. It had worked for me last month. Yesterday, late in the day, I bought calls on the SPY and QQQ. Of course, I wish that I had bought more calls. It is so difficult to buy when the market is dropping, especially with all of the bad news in the media. I will post the video if I can find it again.