Posted by sbaxman111 on 7th of Feb 2018 at 12:48 am
I'm still here - Any time I shared or posted information about
using XIV/VXX as an alternative to the normal leveraged index funds
that I prefer, I usually offered up that these trading vehicles
weren't for the faint of heart, and that only modest amounts of
money should be employed with them if anyone decide to use them at
all - money that an investor could afford to lose in the case of an
unexpected and unanticipated event like today. I happen to have
decided to stay in cash when the Jan 30th Spy Pro first scale in
was posted. I've been doing this long enough to have developed some
level of "intuitive radar" about extreme market conditions like
those that have been in place in Jan.
On that day, the 30th, the XIV intra-day high price was
$125.83....on the 26th it had been over $141. During that same time
frame my 200% leveraged RUT fund had lost a little over 3% - the
XIV was significantly worse off. Even if I had taken the
trade and bought XIV on th 30th, I would have certainly chosen to
employ at least something like a 5-10% stop loss intra-day. There
was plenty of time to get out of XIV prior to yesterday's close and
today's ensuing meltdown on an intra-day basis, take a modest loss,
and perhaps even flip over to the VXX side based on the way that
the reverse etn's were moving intra-day. In the real world of the
highly regulated RIA business, no adviser in their right mind would
ever recommend that an older client put any reasonable sum of money
into VIX etn's. That would be a lawsuit/arbitration surely waiting
to happen for that RIA/Registered Rep and their
broker-dealer....even more so now under the DOL rule where everyone
is now considered to be a fiduciary. I have been on this site for
quite some time now, and while I have picked up some valuable
information and ideas along the way, I also research a lot of my
own customized data points, test a lot of various signal
combinations, and clearly realize that I always have the only, and
ultimately final opinion that matters as to what and when to
buy and sell.
I'm still here - Any
Posted by sbaxman111 on 7th of Feb 2018 at 12:48 am
I'm still here - Any time I shared or posted information about using XIV/VXX as an alternative to the normal leveraged index funds that I prefer, I usually offered up that these trading vehicles weren't for the faint of heart, and that only modest amounts of money should be employed with them if anyone decide to use them at all - money that an investor could afford to lose in the case of an unexpected and unanticipated event like today. I happen to have decided to stay in cash when the Jan 30th Spy Pro first scale in was posted. I've been doing this long enough to have developed some level of "intuitive radar" about extreme market conditions like those that have been in place in Jan.
On that day, the 30th, the XIV intra-day high price was $125.83....on the 26th it had been over $141. During that same time frame my 200% leveraged RUT fund had lost a little over 3% - the XIV was significantly worse off. Even if I had taken the trade and bought XIV on th 30th, I would have certainly chosen to employ at least something like a 5-10% stop loss intra-day. There was plenty of time to get out of XIV prior to yesterday's close and today's ensuing meltdown on an intra-day basis, take a modest loss, and perhaps even flip over to the VXX side based on the way that the reverse etn's were moving intra-day. In the real world of the highly regulated RIA business, no adviser in their right mind would ever recommend that an older client put any reasonable sum of money into VIX etn's. That would be a lawsuit/arbitration surely waiting to happen for that RIA/Registered Rep and their broker-dealer....even more so now under the DOL rule where everyone is now considered to be a fiduciary. I have been on this site for quite some time now, and while I have picked up some valuable information and ideas along the way, I also research a lot of my own customized data points, test a lot of various signal combinations, and clearly realize that I always have the only, and ultimately final opinion that matters as to what and when to buy and sell.
Basically the low volatility trade
Posted by torvix on 7th of Feb 2018 at 05:21 am
Basically the low volatility trade became very crowded and now those who did this end up paying the piper.