this is overdue for a reversal and I don't need to understand it to know that
Its important to understand how UVXY operates, because its important to know the consequences of being wrong.
If one were wrong about a traditional stock being "due for a reversal" then one would expect the cost of that misjudgement to be very small, as you could likely exit your position for at least relatively close to what you paid for it.
It is easy to see how if one were unfamiliar with how UVXY operates, that one could fall into the trap of that assumption.
However for the many reasons laid out by myself, doc, and others, UVXY is nothing like a traditional stock. The cost of even mis-timing spikes in UVXY is great, even without the current overall market trend, technicals, and Fed support.
Basically I'm saying use tight stops - a comfortable and beneficial level I've found is 5%, and make sure to be extra picky about your entries. I went flat in my portfolio at $6.84 (basically my "long" bet), so you got me beat. I think you'll be fine though, as long as you aren't scared to take profits. Like I said earlier this morning, I would love $7.
Hope that helps explain things some, and let me know if I can make anything else more clear.
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