With sincere hopes of black smoke and bustling metal, rummaging throughout Wall Street, I sold out of PWRD, AMKR, CSIQ and BRCD, in order to reduce my long exposure. It has long been a personal dream of mine to see the stock exchange punched out with a steroid induced robot punch to the scrotum. Looking at today’s tape, it looks like a good starting point. Keep in mind, little girls, I am not overzealous in my pursuits of happiness, with a touch over 25% of assets in VXX, short AEM, short MELI. However, with the right sort of “pin-less” hand grenade action, I will be shorting many more stocks in the not-so-distant future.
Into weakness, I will pare back my longs, due to the outside chance that we have jumped into the crevasse.
NOTE: I added to VXX
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No more lotto?? How sad. I kinda got used to buying and scratching.
We went lower on Friday. This market is recovering.
My Fly, we are down like 1% and everybody freaks out and starts dumping long and shorting…LOL. We are going higher. Should have kept your longs and dump your shorts instead!!
when are you dumping AEM?
Will someone help me to understand – with market down more than 1%, why VXX only up 1%?
Because VXX is a liquidity trap.
and TZA? FAZ?
Bears have attempted to break thru 1165 a couple times on /es. Lookd like they are trying again…3rd times a charm?
Wall Street Wealth spills over to Joe Mainstreet
http://i.imgur.com/6qI3j.png
I bought a full position inTZA last night before the close and sold it by 10AM. The supercomputers have been moving the market at their will and I don’t trust them.
wtf is up with spxu
It had a last minute price spike yesterday that is confusing you. The current price is correct and higher than it was yesterday.
>>>>hubbs says:
October 19, 2010 at 1:45 pm
Will someone help me to understand – with market down more than 1%, why VXX only up 1%?
>>>>>>>
hubbs:
Because VXX is designed to go to zero, based on the math! Holding it for more than 3 – 5 days makes no sense,
thanks zephler. i never knew that is the case. hmmm thought to hedge my longs with it but maybe time to rid it soon.
would TZA be a better hedge than VXX?
Every day starts a new 3-5 days. So when is a good time to sell?
and Senor Tropicana has added to his fucked up VXX position. OK somebody splain please. Yunz cant all be right.
exactly. I don’t understand this VXX business… one very experience trader told me to delete VXX off my screen forever and here Dr. Fly just added more! my share is down from $21.50 and wondering about add on… sold TZA early for a bigger loss already.
A real sell-off? what the FUCK!
Living in the Seattle area, if we go without rain for about a week I get all confused and wish for rain just to get a sense of reality:) market hasn’t had a real selloff in…fuck, I cant remember fr how long, but I am in tears of joy to know that yes, I was not confused, the markets do sell off once in a while! I am sane, there will be rallys AS WELL AS SELLOFFS! WHOOOAAA. Sorry if you are loosing money today but you had it coming.
Am I rejoicing too early, I bet come 3:30, we’ll see the 200 point loss narrow to 50 points. NOT! today anyways.
Nice rant.
This is nothing.
About 23 years ago on 10/19/87 I told my wife I was thinking of booking a flight to Boston and was going to the headquarters of Fidelity Investments with a couple of suitcases.
I was going to withdraw all of our money and bring it back in the suitcases and bury it in the woods.
…wow that would have sucked.
I had been in cash for several weeks because of the wild gyrations at the time (up 100, down 100) and the currency sniping re: the D Mark,Yen and dollar (that would be then treasury secy asshole James Baker).
I will admit that I was scared shitless on Monday 10/19 as well as the AM 10/20 to do anything but watch the old FNN (financial news network).
Lesson learned: buy stocks when throwing up and sell stocks when I think I am a genius.
1987, I was just out of high school. I was long beer and women.
the fuck is a abound! quantive screws are being placed but r chineese friends
VXX: it has two big problems, one like long commodity funds (USO, UNG) and one because of options.
The first part is the natural volatility structure is lower near in time, higher out. It creates a huge contango curve that forces VXX – which has to maintain a 30-day forward – to buy whatever is coming. That forces VXX lower.
The second part is that it is a play on a statistic of options. The statistic can’t be hedged, because there is no underlying stock. That means there is no way to get a neutral investment, which drives price lower because new buyers demand lower prices to compensate for risk that can’t be hedged.
If you want to trade VXX, be sure you understand contango and options pricing – otherwise your “investment” will leak away like a rifle-shot water barrel.
Thank you, EV. In this case TZA and FAZ should do better as hedge?
Or at least TZA and FAZ do not have the problem that VXX has?
TZA has a different problem, tracking error. The prospectus says it tries to do 3x the inverse of small caps – on a DAILY basis. They do this with a combination of futres, options and swaps. The intra-day performance is OK but even over a week it leaks value.
But for a very different reason than VXX leaks. I would carefully RTFM before buying a leveraged fund.
EV, Thank you!
EV, thank you very much.