Replies to post #951 on ProShares Trust Ultra VIX Short Term Futures ETF (UVXY)

[Globaltrnr]

I play them up and down but if you look at the trend line they go down, TVIX does the same ..

[eric4x]

It goes down relentlessly, but not to zero.*

The market tends to go up more often than it goes down. In effect, the "bull shares" such as SVXY and XIV tend to hold their value, but the "bear shares" such as UVXY and TVIX tend to keep dropping. Just look at the historical prices.*

http://www.google.com/finance/historical?q=NYSEARCA:UVXY#

http://www.google.com/finance/historical?q=NYSEARCA:SVXY#

Both funds started at about the same price of $40 per share. The historical chart for UVXY says it opened at $242.70; This is after accounting for the reverse split of 6:1. Before the reverse split occurred on March 8, a quick check with a calculator will show that all numbers are divisible by 6. Starting on March 8, they are no longer divisible by 6.*

SVXY goes up to over $100, and then back down, and then back up. UVXY is now under $6 per share, but this was after a 6:1 reverse split. So the true value of UVXY original shares, since October, is under $1. UVXY has dropped to one-fortieth of its value in less than a year.*

It's like rampant inflation. The value becomes "nearly" worthless, but you can still buy a loaf of bread with a grocery sack full of high-denomination bank notes.*

Of course, buying and selling at the wrong times would cause the trader's account to go down in value, while buying and selling at the right times would cause the trader's account to go up in value.*