This is my Track 2 trade that takes up 33% of my fund (excluding margin allowance)
This trade currently is aligned to the greater market direction which is bullish/ranging. There also seems to be some positiveness in the reports with inflation cooling and businesses still retaining their workforce despite the Delta virus impact. Have to keep an eye on the market...
We continue adding to our Buy to Opens in the M1/M2 VXX Short Dated 30 day rolling maturity.
Front Month M1 has held support repeatedly, 18.60 for the M1.
Daily Weekly Monthly Supports are holding and presenting a large opportunity for levered gains.
VXMT is supportive of a move higher.
Probability remains extreme @ +86%
We are loading the woodshed on VXX and the VX Curve M1-M3.
The comical chase is having second thoughts.
NVDA is a prime example... utterly devoid of common sense.
Simply more chasing of Big Green Bars.
We are bag holders of 75 NVDA Puts:
Alex sez load em up HK
She was correct, on balance +13.88% at present/more to come.
VXX coming back to lower end of Range.
We are preparing for a large Selloff in the next 48 hours.
VXX Entries are Laddered down to 24.50 from 27.05.
M1/M2/M3 VX Curve as well M3-M4 provide pressure for now...
Only for Low Participation - We anticipate a High Tomorrow at the
latest for ES.
It can hold off as late as Globex... we'll be 40% into our SELL...
CASH/SPOT VIX will converge with AUGUST CT @ Close as it always does.
As we move from AUG M1 settle into SEP (M1) / M2 (OCT) the spread is now
Pay close attention to how it squares end of day.
It will provide solid indications for Thursday/Friday EOW trading.
Settlement has a decided SKEW to those paying close attention :)
M1/V1 & M2/V2 Roll is in trade.
Settlement occurs the same day (Wednesday)
as the FED Minutes.
We're cool with being early, it's better than
late when this blows up and it is setup to do so.
The Speculators want a massive blow off.
5K ES everyone.
Yeah, naw. Not yet, we need to see a panic sell
in order for the FED to double down... and they will.
A solid Hedge for VIX Complex Traders is the VXX.
VXX is comprised of Short Volatility Instruments - M1 (or Front Month of
VIX Futures Contract "July" until tomorrow's settlement) and M2 (August
VIX Futures Contract).
Yesterday we observed the Short End of the VIX Curve trade to "Par" where
July and August traded to 2460 simultaneously.
The Short End of the...