Strange Days

I’ve spent the better half of the day considering putting on a pleather VXX vest and riding a little tricycle wearing a tiny tophat. Or perhaps I will instead don a pair of assless UVXY chaps for my curious tricycle ride. Volatility has absolutely collapsed but I would never call a top, or a bottom for that matter. No, cynical one star rating internet miscreant, I don’t understand the intricacies of VIX VXX veddy VXX tits and its contango and other obfuscations. But is wanting simply to be long volatility for a bit too strange a reason to use these POS instruments? The VXX with its flaws and brokenness and UVXY with its stupid ticker symbol? At these prices I feel more excited than a gregarious Rottweiler at the Westminster Kennel Club.

The markets are being bid up as we approach the FOMC meeting this afternoon and it has me and others puzzled and cautious. Again to be clear, my bias was and continues to be bullish. I’m underinvested, sure. And that’s fine. My portfolio sits at its high watermark. Investors and traders I pen pal with also appear under positioned to take advantage of our current market. Their caution is part of what keeps me in my longs. I also feel it’s too risky to NOT be long in this environment where shit stocks rip on light volume and no news. Pikers are killing this market with their unscarred fresh faces. Such is life in the markets.

I do twitter, and I’ll let you know ova there if I gear up for my trike ride.

Be well my friends, define your risk, and engage.

http://www.youtube.com/watch?v=FmPi8ePDmcg&feature=youtube_gdata_player