Fed lowers interest rate by a quarter-point, many on panel see another cut this year. 0.25 today , one more cut this year. Market is not happy with this so I think volatility will come back and the stock market drops into its DCL in the following days.
Time to load up up with some TVIX shares.
Comment
⋅
It starts to look like I was one day early in this call.
Comment
⋅
I don’t kike today’s price action. Closing the trade with a small profit.
@petem_567, most of the time it’s starting like this. Trade is going against us.
aron42
⋅
Sorry I cut off the paragraph from the prospectus I realized, here is the rest:
Over a longer holding period, the applicable underlying Index is more likely to experience a dramatic price movement that may result in the Intraday Indicative Value becoming equal to or less than twenty percent (20%) of the prior day’s Closing Indicative Value. Upon such an event, your ETNs would be subject to acceleration and you will likely lose all or a substantial
portion of your investment. The long term expected value of your ETNs is zero. If you hold your ETNs as a
long term investment, it is likely that you will lose all or a substantial portion of your investment
aron42
⋅
I got in this trade a couple of days ago and definitely agree with your analysis, the chart looked so appealing I couldn't resist the trade.
I will continue holding but I did want to share some information from this investment products prospectus as I was scratching my head as to why the VIX was up about 5% at one point today while the TVIX was down about 3%.
"Long holding period risk
The ETNs are only suitable for a very short investment horizon. The relationship between the level of the
VIX Index and the underlying futures on the VIX Index will begin to break down as the length of an investor’s
holding period increases, even within the course of a single Index Business Day. The relationship between the level
of the applicable underlying Index and the Closing Indicative Value and Intraday Indicative Value of the ETNs will
also begin to break down as the length of an investor’s holding period increases. The ETNs are not long term
substitutes for long or short positions in the futures underlying the VIX Index. Further, over a longer holding period,
the applicable underlying Index is more likely to experience a dramatic price movement that may result in the "
Let me know if you have any more insight on this, but TVIX may not be the right product to have a long term trade in to match the VIX.
TheAmericanTaxpayer
⋅
@YupitsPD, Vix had a gap to fill. Thats why I believe it moved differently than TVIX.
mansofun
⋅
they are manipulating the market both to trap the bulls, and to avoid the impression that the FED brought the market down so thats
my reason, based on my thinking now, why the market went crazy the last hour.
it could be something the fed said.. but I lean more on the side that thinks they juiced up the market for their own reason.
remember all the money they play with is people's money. really.
PowerOfCapital
⋅
May I ask you what price level is your DCL for SPX500 above chart?