Replies to post #650 on ETFs, Leveraged ETFs, Sector Funds

[No-Quarter]

Thank you for the PM. Very helpful. I liked it enough that i Subscribed to that newsletter myself yesterday.

TY

[No-Quarter]

I'm liking this news letter. Thank you for making me aware it its existence.

As discussed in Monday's commentary, the next large trade I am considering is to take out a long bet on volatility, which is also a bet on a broad market correction, as a hedge against this long oil position. With underlying fundamentals improving, the primary threat to oil is underlying market weakness and this would protect against that. With the VIX falling toward 12, historical trends strongly favor a reversion towards the long-term mean of 18-20. For this reason, I am considering shorting a 10% stake in SVXY, the VIX inverse ETF, thus providing long exposure. Stay tuned.