I was so right on the direction of the VIX today! But so wrong on choosing VXX to play the move!
I had originally intended to stay out all week and remain FLAT.... BUT, last evening while studying charts I felt compelled to go long volatility on the last day of the quarter, there was overwhelming evidence that the VIX has bottomed! So in pre-market trading (read my twitter trade!) I purchased the etn VXX on that down spike after the ADP number this morning, anticipating an explosion in volatility today... I was right...as the VIX was +2.7% today...BUT... that dog with fleas, the VXX was -1.3%. We have reached the pinnacle of tracking errors and my own money was on the line! I own 1,000 shares of this turd and I am pissed off.....
I just came across this article: http://vixandmore.bl...xx-and-vxz.html
Shame on me for failing to do more research...shame on the mgmt. company that issues these crappy ETN's.....
VXX is WRONG, SO WRONG...tracking error from Hell!
Started by
cycletimer
, Mar 31 2010 09:26 PM
6 replies to this topic
#2
dTraderB
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Posted 31 March 2010 - 09:39 PM
UNG is another fraud
#3
cycletimer
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Posted 01 April 2010 - 05:10 AM
UNG is another fraud
YES! I heard that. We all have to be very careful with these ETF/ETN;s.... some are fantastic trading vehicles while others, you are better off playing Russian Roulette with a semi-automatic.
#4
cycletimer
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Posted 01 April 2010 - 07:27 AM
Against my own rules here I doubled down at 20.85 in pre-market trading... my basis is down to 21.26 .... i have a goal of exiting at just above break-even today... Otherwise its simply adding good $ to bad....
#5
uburack
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Posted 01 April 2010 - 07:32 AM
I did the same thing around 41, got out at 39. The etf makes absolutely no sense at all.
HAppy Easter to all,
John 21:6 And he said unto them, "Cast the net on the right side of the ship, and ye shall find". They cast therefore, and now they were not able to draw it for the multitude of fishes.
#6
cycletimer
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Posted 01 April 2010 - 07:35 AM
I did the same thing around 41, got out at 39. The etf makes absolutely no sense at all.
HAppy Easter to all,
WOW, when was that... in how much time has this turd dropped in half? Happy Easter!!!
#7
uburack
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Posted 01 April 2010 - 08:05 AM
I did the same thing around 41, got out at 39. The etf makes absolutely no sense at all.
HAppy Easter to all,
WOW, when was that... in how much time has this turd dropped in half? Happy Easter!!!
Late November. Someone talked about going short VXX back then and I laughed because VIX was low then. Wait for VIX to spike then go short VXX IMHO.
John 21:6 And he said unto them, "Cast the net on the right side of the ship, and ye shall find". They cast therefore, and now they were not able to draw it for the multitude of fishes.
