Replies to post #15524 on ProShares Trust Ultra VIX Short Term Futures ETF (UVXY)

[Montanore]

Picked up a few shares under $30. This is a hot potato and should never be held long.

" this market is no longer as tied to real economics"

This is true and it's also true for many other events--there are things happening that are not tethered to reality.

[mannken]

yep, certainly concur with your comments

little doubt in my opinion, markets will normalize to historical levels and a correction is looming, weeks, months, hard to say, markets are pivoting around the hotter CPI yesterday, is it transitory or not, economies, like CA are starting to open, I would argue this will invalidate the transitory inflation narrative and Fed will need to stop printing, besides, I think Fed has been historically behind the curve, with that said, I started yesterday small, will hold and incrementally scale throughout next week, of course always with an exit plan if it doesn't work out

[mannken]

Also, from the weekly SPY chart in my post

Of particular interest is the Price to MACDH diverging slope trajectory between market corrections from 2019 to 2020, very similar setup, with the exception the divergence is exponential compared to the previous setup

timing is impossible, so always staying objective and limiting risk on a weekly basis while scaling into volatility