Morediv, to be clear, I don't post it to badmouth Cramer, but to illuminate the prevalence of those practices, add to that, HFT was nowhere as present at the time he did that interview.
Cramers claim to fame is the "bad guy gone good", I do think he occasionally misleads, but more often he's concerned with his ratings/reputation.
Don't worry - my level of trust and/or respect of Cramer remains the same.
And I don't fault him - he just voiced the truth.. and only because he was getting raves on his new show (at the time). think video was made in 2006?
He is a good entertainer and I occasionally watch his show (and see him on in mornings..) and get his take on things I am already interested in. But nothing much beyond that.. he is in the business of making money just like anyone else - hopefully within the law - as it is.
lol.. 10.99 if i remember.. when i saw his post.
Bought back in to level the pair @ $10.20 mid-day with VXZ finally playing catch-up, still substantially lower in total dollar amount since last Fall.
XIV is down roughly 24% from it's recent high.
Right there with ya, Incy. Sold off some VXZ @ 50.00 and bought XIV @ 10.00. I need to add VXZ tomorrow or the next up day.
Dumped the $10.20 purchase @ $11.15 yesterday and leveled off the pair, XIV had surged almost triple VXZ's drop for the day - another "gift horse" moment.
Ironically, the pair is break-even today as VXZ stays close to 1/2 XIV's pace, but I'm not counting on that to continue if we continue into correction.
From this point I'm going to let VXZ pay for XIV purchases,.fully knowing XIV will fall at a faster rate than 2X VXZ if this is a substantial correction, I know it's unrealistic to expect VXZ gains to outpace XIV losses, but after the gains from last Summer/Fall, this will be a replay of the same strategy.
I dumped my 10.00 lot @ 11.25 on Thursday. Couldn't do anything Friday (the iPhone App wasn't working). Interesting to see some of our trades mirroring.
I won't be going 2x VXZ until we get out of this Bull Market. Not quite there yet.
Bull/Bear, I have no clue, I don't have an "intelligence" firm drudging for insider info in D.C..
This one's a sleeper unless it gets back down close to $10, or jumps to $12.
Sorry to hear we missed that trade. The iPhone app should again be available today, and Tech's confirmed they're in process of determining what was causing the log in errors for a perm. fix. While the site doesn't technically support the iPhone for normal login through Safari, it can be accessed if you need [or prefer] --the quick trade bar is just stationary on the page. Of course, we're always glad to take the trade at 877-495-5464 at no additional cost as well, and sorry for the inconvenience with the app outage.
Trading and Customer Support
No worries, Rocco. I was distracted that day anyway by trying to hit a little white ball into a hole. I'm sure TK will fix the App glitches after all the tax form dust clears.
The underlying index for VXX,XIV and TVIX isn't a single VIX futures contract, but a combination of 1 & 2 month futures that's rolled every day.
The topic we're discussing here is Contango/backwardation and the effects on VXX/XIV in roll decay/inverse roll decay, though similar they're not the same thing.
Brian is discussing futures mean reversion at expiry for single contracts and using it as an arbitrage./ spread strategy.
Read some of the posts here, we elaborate on the historic propensity for the VXX sub-index to trade in a usual state of Contango that causes decay on VXX/TVIX which makes it a great short position over longer time frames.
Brian is discussing mean reversion for a single contract, I.E. if the one month VIX contract is trading at a discount or premium to spot, you can likely expect it to reach parity by expiry.
I sold off my VXX position awhile back, and have been selling down my XIV position on the way up. The farther out month VIX futures still are in Contango, but I'm looking for an opportunity to pair what's left of my XIV position with VXX again. Seems like Monday could work since I missed the boat today.
I know I can't time the perfect entry before the summer volatility spike, but I can try, right?
Careful there Jano, don't get "Pavlov'd"
Well, it could be a win-win, then. VXZ continues to drop while I wait to get back in, while my current XIV position keeps going up. (I miss-typed above in the prior post - VXZ, not VXX).
The dinner bell the Market keeps ringing doesn't make sense to me. It rings going up. It rings going down. Current performance mirrors past performance. Current performance completely diverges from past performance. It's enough to make one fly over the cuckoo's nest. =o) At least you can have a little fun doing it.
Pavlov rang the dinner bell, so I got back into VXZ @ 45.25 to set the XIV/VXZ pair at 1/1 for now.
I think it's a couple weeks early to go 2x VXZ. I'm trying to put a new spin on your proportioning based on near term sentiment. 1x VXZ for bull, 1.5 VXZ for rangebound, 2x VXZ for bear.