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

Do you understand the structure? Not a long term investment

[magic_gerbil]

This investment lost 11% in 2010, 44% in 2011, 97% in 2012, 91% in 2013, and -62% in 2014 - if you were able to get enough units to short it would be a license to print money. Due to the negative roll yield on the futures contract even when volatility increases you lose money. Unless you are using this to move in, and out of a trade in a single day tracking will not be correct. I don't know who is on here marketing this investment as a longer term play on volatility, but it just isn't so - I know people who have lost a considerable amount of money playing this investment the wrong way, and this is a warning to those who do the same. Even taking a date just prior to it's last big spike in Sep 2011 the etf would have been effectively trading at $80,480 dropping to the price of $12.63 right now.

[Steven1]

Agreed. Everyone knows you can be this too long. You need a 2008 crash and SP has to stay down for HVU/UVXY to get to $100.  Which is pretty low compared to 2010. I can’t see HVU getting past 40 if the SP tanks.  Once the SP recovers, it will start a downward journey and perhaps even fall below $10 or more. Horizon will probably have to do a reverse split at some point

[Steven1]

The all-time high for VIX futures (not the index) was 72 was back in 2008 during the financial crisis. So it’s possible for HVU to get up to 200+. Theoretically at least and if you believe HVU/UVXY/TVIX is a lottery ticket :) It can never get back to 2010 levels due to slippage as it’s hard to replicate the VIX short term futures exactly. In the case of HVU, you have to factor in USD exchange

[Shlinker_]

Well this has hit my stop loss limits the past 2 days. Ive owned it for 5 days. I could have made quicker trades but failed to do so. HVU isnt a great product by any means, as your timing has to be dead-on. The S&P is very overbought, it has been for sometime, but the manipulation is strong in the US. Anyone investing (gambling) here needs to know this is only a buy when the daily RSI of the S

[Steven1]

Friday (last week) was a game changer. The surprising NFP report will likely delay the rate hike till before the US elections. The planned rate hike has been the main catalyst for keeping the SP at near ATH since early April. The Fed is on record as saying (earlier last week) that they don’t want a June rate decision to have an effect on markets during the Brexit vote. Brexit has not been priced

[Shlinker_]

Good insight Steven1. I for one will be lurking when the S&P fails...because lets face it, it will

[Steven1]

Thanks... Yellen will be speaking on Monday. It may explain the muted SP reaction on Friday. BTW, I watch the economic calendar like a hawk. Something I've started in the last few months https://www.investing.com/economic-calendar/ https://www.tradingeconomics.com/