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Re: Liam00 post# 41286

Thursday, 09/15/2016 4:18:13 PM

Thursday, September 15, 2016 4:18:13 PM

Post# of 47075
Hi Liam00

You either have a typo or a misunderstanding.

VIX up usually means the market is dropping or just increased risk / volatility.

Inverse VIX will tend to move with the market.

So you dont want to invest in UVXY if you predict the market will go up, you want SVXY.

Because of what I assume is your presumed inexperience DO NOT EVER INVEST IN UVXY.

UVXY goes up lets say 5% of the time while SVXY goes up 90% of the time. Take a look at a few year chart to see. UVXY is very hard to time and you dont want to own it long term.

XIX and SVXY ( ONLY IN IRAs due to k-1 ) can be bought on VIX spikes and then held while vix drops below 12. I will leave it to you as to whether 30, 40, or 70 is a spike. You can afford to be wrong if you get in at vix = 40 and it goes to 70 as it will drop down fairly quickly. You cant afford to be wrong with UVXY on the ither hand.

So to answer your orriginal question, it is xiv and svxy that moves oposite the vix but WITH the market. UVXY moves with the vix but opposite the market. But the whole point of Aiming is to take the emotion out of investing. You asked a question which is the antisisis of Aiming.

I started Aiming xiv and svxy but when vix went below 12 I took the money and ran and will wait for the next vix spike to get back in. If I am early I will let Aim tell me to buy more.

Hope that helps more than confuses you
Toofuzzy


Take the road less traveled. It will make all the difference.

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