romans holiday Posted July 8, 2010 Author Report Share Posted July 8, 2010 Yes, definitely unleveraged. It will be interesting to see how long it takes for VXX to come back down....now 28. Also, I wonder if the price might be supported a little above 20 as I imagine a few bears will be lining up to buy...... VXX down to 26. Am hoping for a good bounce in the markets here, which could see VXX down to near 20. At 20, I'd like to put a reasonably sized trade on, and then just sit on it. Though more inclined towards long term investing [disinvesting?... sitting in gold and US dollars] than trading, I am interested in position trading the big volatility when/ if we get it. Looking at the previous correlating spikes in VIX and VXX, VIX went to 47 and VXX went to 36 [this was a great confirmation on how VXX would perform on a sell-off]. I'll look to hold onto this position should we see the big one, which should take VIX near 80, and with the above correlation in mind, VXX to 60 odd. So my target will be to sell VXX at 60. Once sold for US dollars, this should set up for a good opportunity to put straight into another trade. Silver, or a stock like silver wheaton, should be very low at this point in time, and would no doubt go on to recover. Alternatively, may just pile it into gold bullion, and a major gold stock. This will be my last year working in Seoul. The global economy, let alone the national currency, is looking very wobbly. NZ is not much better. I am therefore seriously considering the prospects of prospecting for alluvial gold in the Southern Alps for a year or so. Link to comment Share on other sites More sharing options...
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