Expect dropGreat gap down to a pre market low at very close to 18% off the Friday high. The Fri high collapsed 10% before the strong run to 5 day highoccurred. I took a smaller trade UVXy but exit was 1% before AM peak.
Why and where would I short I looked at Friday high 0f the premarket being $19.56. There I shorted UVXY aand price slightly lower.
Why? Concern is Trump is not leaning on China just in his way requesting they discuss fair. We need to observe how he negotiates one on one then let’s dust settle. $60 bill with China re balance is a pittance verses the trade they do with US.
The more we here talks ongoing the faster HVU will plunge.
I believe eve as a group we should be satisfied with recent gains and trade lightly until we see the April earnings release. If earnings start coming in at or above the estimates of major corps UVXY and HVU will fall fast.
Our best trade likely near Fed June meeeting or late May . If no interest rate that meeting market will bounce. There we reassess.
Current if you are not exiting with profit and watching price drops you will lose a lot on a VIX trade.
Just my opinion. See my short trade is improving. Looking for day exit here at $18.10 to $18.60. That taken off if I see support for another run up today. Often HVU just keeps dropping as board market consists of majority of funds supporting entry on price drops. That support is a HVU killer.
Always open to inverse when trading ETF positions. Do not see solid support here and note way lower in pre market. Convince me HVU.
I trade reality of price climbing or dropping whether day, week,month trade. I hold longer on individual stocks banks, most industrials, real estate and transportation providing market sectors are in sync with a bull market run.
GLTA Manx