BETAPRO SP500 VIX ST FTRS 2X DLY BULL T.HVU

This Widowmaker Connn Tango!

[TheCapitalistBear]

VIX needs a sharp reversal soon or contango will ravage this thing like the water aisle during a hurricane. Contango currently ~6%. Good luck to my fellow snake charmers.

[Murraylaplante]

Hey Mr Bear..:) Can you put that message in a relativally simple for so a guy like me can understand,any help understanding this HVU would be appreciated....This stock has been bleeding heavy all week??? Hope it stops soon??? Thank You Sir!!

[mar82is]

From my observation it seems to follow the dow Jones index very closely....DJ up hvu up...dj down hvu down Also regarding when it will the bleeding stop well that's whenever the world comes to its sense and bad news comes out of the US economy or Japan, China, etc etc.  Anyone else care to chime in pls do as I'm a little new to this myself.

[Midgetwhacker]

Volitility in the S & P is going to come. When that is i dont know, but i can say that IMO the markets are being extremely irrational right now.  The main driver in the s and p is commodity prices right now. But if you think about nothing has really changed at all from dec - january. With oil drill rigs have went down, supply has went up, demand appears to be flat /  with modist

[TheCapitalistBear]

Hi Murraylaplante, hopefully my early years of lessons--which in markets stands for losses--can help you a bit. HVU is not a company stock, it's an ETF (Exchange Traded Fund). It attempts to replicate 2x the price action of the S&P VIX (not to be confused with the CBOE VIX). The S&P VIX typically moves inverse to the S&P 4:1. That is, if the S&P FALLS 1%, the VIX RISES 4

[Murraylaplante]

Thank You Sir.. I will try to digest this reply this weekend..... I see we have reached the 52 week low today:( This thing going to start going into the green soon? Or do you see this dumbling farther? I no you have no crystal Ball but really this is been down down down every day this week..:) Thanks Again 

[TheCapitalistBear]

Remember, this is not a stock! The 52 week low means nothing for HVU. As I mentioned before this is because HVU will perpetually, infinitum, long term decay towards 0, zilch, nada, nothing.  It is down because S&P keeps going up. It's down more than 8x inverse to S&P because we are in deep contango of 6.27%. Until S&P goes down and contango retreats, this thing falls

[Murraylaplante]

Thanks Again for your very real advice,its appreciated..... Well hope next week things turn for the better:) Sending positive thoughts for Long HVU

[Midgetwhacker]

You obviously shouldnt be trading a inverse vix then. Your advise is confusing and not entirely correct. Correct me if im wrong here. The chances of the VIX reaching zero is almost as close to a free fararri being delivered to my door. But since the VIX is based off of options |Calls and Puts| your trying to tell me that the US investors dont care about hedging there bets in the S and P 500. 

[TheCapitalistBear]

Oops! You must have confused HVU with the VIX. HVU perpetually works towards 0, not the VIX. Also, HVU will never actually reach 0! It will just work that direction over time due to decay (percentage losses that never fully recover.). IE. If SP $100 and we have 20% loss, we close at $80. However, 20% gain only brings us back up to $96. Add contango--the normal market condition--and this SP falls

[Murraylaplante]

Thanks for all the great Advice!!! If anything I have got some discussions going,that I hope is Positive for All:)