I’m taking another run at TVIX.
Notice how we’ve had 4 up days in a row on the S&P 500. That doesn’t happen very often folks. In fact, it’s the only time we’ve had 4 up days in a row in all of 2012!
These abnormalities make excellent money making opportunities but they don’t come along very often.
I’m betting that the market is going to go down in a day or two from now and when it does, I’ll make a quick 10% in TVIX and then I’ll go back into the safety of cash.
TVIX is near its 52 week low, a level that it has bounced off of twice now. The 52 week low in TVIX is $5.84. I bought TVIX today at $6.07. After the market closed, I’m happy with my perfect entry right off the day’s low. How luck is that. Perhaps TVIX will fall back to $5.84 but even if it does, I’m happy with my $6.07 entry.
As far as the news goes, I’d like the Fed to do nothing and have the market sell off as Bulls will be disappointed. What I don’t want is some Fed announcement that pushes markets a lot higher.
Remember, this is not a Fed play. The profit thesis is that the market seldom is up 4 days in a row and so this is a straight up count of up days versus down days.
I’m not getting married to TVIX. I’m just going on a quick date. As such, any spike up and I’ll take profits quickly and move back to the safety of cash.