UVXY and ETF Short
It's high time we accept the new reality of the inverted reality. The week of July 25th was perhaps one of the most volatile in a long time. Why? We had CPI report, earnings, and Fed Rate Hike.
What did volatility indecies like UVXY do? They sold off. It doesn't take too much logic and common sense to see something egregiously fraudulent is taking place when companies miss earnings, and their stock price rally. Or, in the grander scheme of things, horrible economic data sends markets rallying.
At this point, the market has become a literal casino gambling machine with luck, not technical analysis, economic data, geopolitical issues, trends, patterns having ANY influence. It's simply a yes or no by someone or some people at the top who dictates the move of the market.
I believe now that retail investors are at their smallest ownership of equities, the volatility index and ETFs like UVXY no longer really apply. Why? Institutions, computers, and algorithms can not panic or feel fear, only retail investors aka human aspect can. This is why you no longer see significant sell offs when there is bad news like a possible Taiwan invasion or conflict with the US.
So in conclusion, at this point, its best to get calls on pretty much anything. AMC, BBBY, Apple and others go up without reason. BestBuy stated they would see losses in Q3, and that rallied their stock. Nothing can bring this market down, so I wouldn't even be scared about getting calls, investing and waiting as your portfolio grows even in the worst of it. Perhaps actual WWIII would send markets to new record highs.
Short the volatility ETFs, UVXY, SQQQ, SDOW, SPXS, misc.. because they're destined to collapsed even if the world was on fire and there were 50% unemployment. I think the stock market is everyone's financial safety with no risks of losing money at this point.
What did volatility indecies like UVXY do? They sold off. It doesn't take too much logic and common sense to see something egregiously fraudulent is taking place when companies miss earnings, and their stock price rally. Or, in the grander scheme of things, horrible economic data sends markets rallying.
At this point, the market has become a literal casino gambling machine with luck, not technical analysis, economic data, geopolitical issues, trends, patterns having ANY influence. It's simply a yes or no by someone or some people at the top who dictates the move of the market.
I believe now that retail investors are at their smallest ownership of equities, the volatility index and ETFs like UVXY no longer really apply. Why? Institutions, computers, and algorithms can not panic or feel fear, only retail investors aka human aspect can. This is why you no longer see significant sell offs when there is bad news like a possible Taiwan invasion or conflict with the US.
So in conclusion, at this point, its best to get calls on pretty much anything. AMC, BBBY, Apple and others go up without reason. BestBuy stated they would see losses in Q3, and that rallied their stock. Nothing can bring this market down, so I wouldn't even be scared about getting calls, investing and waiting as your portfolio grows even in the worst of it. Perhaps actual WWIII would send markets to new record highs.
Short the volatility ETFs, UVXY, SQQQ, SDOW, SPXS, misc.. because they're destined to collapsed even if the world was on fire and there were 50% unemployment. I think the stock market is everyone's financial safety with no risks of losing money at this point.
Trade closed: target reached:
Right on target. This was helped by even more good bad news out of China where retail and industrial production were worse than expected, and I knew this would be bullish for US stocks.
Trade closed: target reached