WHO WAS FIRST, CHICKEN OR EGG? OR WHAT I LOVE ABOUT VIX AND USD
Started Feb 04 at 1:33PM (EST) (By DEVILANGEL)
It's very easy to buy and sell stocks, commodities, FX but what is hard to do, is to know when to do it.
Today is the first day when I bought stock market index, till now I was only short.
The reason I bought it was VIX, or fear indicator. All volatilities from gold, energies, indices are up today from 10-20% and all this assets are down. The thing is that the higher the volatility, the bigger is the move and this move can be in both directions. Right now almost everything is down:
Stocks, Energies, Metals, Meats, Softs except for some Grains, Bonds which move in the opposite direction from stocks and USD Index. What it all mean?
It means that when you think you buy a good stock, cheap precious metal, crude oil, nat gas...in fact you buy the trend and sell the USD. They all go up&down the same, they all are connected.
That's why instead of guessing what is the trend in all this markets, I decided to sell volatility for short term bounce. It is very simple and easy to do that, you don't have to be right or know the trend, all you have to do is to buy anything what is down today (as you see almost everything is down today) and then wait for smoke to clear. So if you know the trend, then good luck to you.
All I know is that I will go out today or tomorrow with nice profits, my MG results show it.
I don't want to be smart, I want to be in the black without knowing the trend.
Today is the first day when I bought stock market index, till now I was only short.
The reason I bought it was VIX, or fear indicator. All volatilities from gold, energies, indices are up today from 10-20% and all this assets are down. The thing is that the higher the volatility, the bigger is the move and this move can be in both directions. Right now almost everything is down:
Stocks, Energies, Metals, Meats, Softs except for some Grains, Bonds which move in the opposite direction from stocks and USD Index. What it all mean?
It means that when you think you buy a good stock, cheap precious metal, crude oil, nat gas...in fact you buy the trend and sell the USD. They all go up&down the same, they all are connected.
That's why instead of guessing what is the trend in all this markets, I decided to sell volatility for short term bounce. It is very simple and easy to do that, you don't have to be right or know the trend, all you have to do is to buy anything what is down today (as you see almost everything is down today) and then wait for smoke to clear. So if you know the trend, then good luck to you.
All I know is that I will go out today or tomorrow with nice profits, my MG results show it.
I don't want to be smart, I want to be in the black without knowing the trend.
- Advertisement -
6 Comments
Top 100%
DEVILANGEL
Feb 05 at 8:32PM (EST)
I was wrong about it on Thursday but today I made 1% and I am very happy, considering many traders lost in this 2 days. I went short into the close (in the last minute) after dumping TNA at a very good price, I bought TZA for Monday.
I see you are still long, what you will do if market opens down on Monday (futures closed lower)?
Top 100%
DEVILANGEL
Feb 08 at 11:15AM (EST)
It will close down today about 1%, don't worry.
Top 100%
DEVILANGEL
Feb 08 at 9:16PM (EST)
This is how much Geithner deserved to be shorted ;) 1%.
Geithner is like a face of USD bills or US stock market guru, he opens his mouth and Street listens. The less he speculates about US credit rating, the better.