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

no movement

[Shlinker_]

Why is this thing moving??

[TheCapitalistBear]

Shlinker, a combination of VIX futures flat and contango. HVU upside will be weak compared to S&P drops until we work out of deep contango to a neutral or backwardated market. Then HVU will respond more forcefully to S&P drops. Also, VIX futures can sometimes tend to REACT to S&P moves instead of moving parallel (IE a delay in VIX response to S&P downside). In case people

[Shlinker_]

Again, excellent information CapBear. Im learning this....please see your inbox. Seems like a good day to buy? L. Berman calls for a market correction. Shall see. Ill hold a bit longer here.

[Murraylaplante]

CB How long to take out the Deep Contango?

[TheCapitalistBear]

We need violent VIX spikes to eat up the contango. This is already occurring this morning as contango has gone from 11.22% yesterday to 8.79% at this moment. Quick spikes drive up front month futures faster than back month futures and thus eats up the contango. You'll see a nice open on HVU this morning. Only question is, we're at the bottom of the small term S&P trend. If S&P

[Shlinker_]

Still holding.... Is it common for you guys and/or gals to hold this if you expect volitility to remain for a few days? follow HVU up? if you think its going up?

[TheCapitalistBear]

I'm still holding because I think S&P is going to at least 1970 in the near term, and ultimately the 1800 area or lower on this next move. You can see what HVU did the last time this happened. DYODD Past does not always predict the future.

[Shlinker_]

Ok, makes sense to hold as long as its moving the right direction TCB. Ive bought 4 times over Friday and Monday myself as ive indicated already. The market could over-react to some negative sentiment and not too mention the fact markets were slightly over-bought. I never thought I'd be rooting for a crash so hard.... GL all...

[TheCapitalistBear]

Still a good idea to have an exit strategy (target price, sell on exhaustion, etc). Congrats on buying so low. You're doing better than I, my avg is $32! haha GL

[Shlinker_]

Thanks, well hope this closes around these levels today....lower contago, and another day like this tomorrow and we're set....

[DSurfer]

This one is kind of hard on mer nerves. Got out at $24.21 Set a tiny buy order at $23.30 Will look for Crude and Silver for the time being. Best luck to all ! DS

[Murraylaplante]

Thanks CB...GL:) I understand the theory behind it people are buying Bullish futures thinking the market is going up for the next month now causing Cantango for HVU ...Than when the S&P starts going down people start reversing there futures and start buying more Bearish futures for the next month what makes HVU stronger ...Than by buying the more bearish futures this kills the Cantango. The