Today is a most special, beautiful, glorious, miraculous day. Take a look at some oil ETFs, and you just might notice that the oil accident of 2011 is quite gone.
I’m up 16% YTD, and there is nothing you can say to me to bring me down from this high.
FUCK YEAH!
The oil trade from last year was a disaster, and well it should not have been. It should have been one of the biggest trades of mine, to date. But I held on too long, and got crushed inside of a month.
Oh well. Who gives a fuck.
Guess what? 2011 never happened, as far as I’m concerned. I lost that money playing UCO; UCO is now right back where the horror began in October. In December, I switched my position from being short UCO to being long SCO and began gobbling up ERY.
After cutting positions, rebalancing myself, and strategically adding to SCO, I finished this long clusterfuck today by dropping my ENTIRE SCO position for $48.45.
MAY IT BE DAMNED. AND I HOPE THE LITTLE RAPSCALLION WHO SCREWED WITH ME CHOKES ON A HOTDOG.
Sadly, this is not the end. I lost over 20% last year. Part of rebalancing was done by selling BG which was subject to mind-numbing losses when I did so. Plus, currently AEC, CLP and CCJ are all selling off. By my calculation, in order to really wipe away 2011, I need to earn another 9% in gains.
And that’s what ERY and TVIX are for.
My sell point for ERY remains much higher from here – I’d like to let the position go north of $18. TVIX has so far been horribly disappointing, but if I could sell it at $11, I’ll have made plenty.
Today was excellent; the blood is hemorrhaging now, and hedge funds – particularly the commodity variety – are being dragged into a wood chipper by their disgusting bow ties.
I WILL NOT BE CAUGHT LIKE LAST YEAR. After this victory, I’m taking my winnings and going to fucking cash.
This morning, I purchased a half stake in APC. There’s a blast from the past. It’s a screaming buy here; that company is elite.
Going forward, I intend to complete my reinvestment in APC, add to silver, and cash out of TVIX and ERY, holding an oversized cash position of 20%.
Now watch in awe. The 9th floor is closed for the rest of the day. I’m getting drunk and dancing on my desk. Get the fuck out of here. And stay the fuck out of here until tomorrow.
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Cheers!
Congrats on getting paid Mr Thaler.
Thinking of joining you in TVIX in the near future. I view it like an options trade and will probably hold it for the duration of the summer. Long volatility when futures are in contango is a beautiful thing. TVIX went up over 200% last year after the VIX topped out. As long as we remain in contango it looks promising.
The only question is, will people be willing to buy TVIX after its debacle this Spring?
I hate to say it, but that instrument might just be dead in the water. Credit Suisse is completely untrustworthy.
Congrats —
Posted in your last post about some things I’m looking at… Pretty short and boring list though.
And you can replace Tvix with Uvxy if it bothers you a lot. These instruments are nuts… even though my brain is saying how much lower can they go and to try to long ’em in case things blow up for a huge lotto play… I feel like many others view it as like buying a cracked out call…
Wow that 2nd thought made little sense…
Meant to say at this point there seems to be much less absolute downside and staying/going long could be a good lotto move
Great stuff…congrats!