XIV & SVXY... An Extreme Lesson in TA

Scataphagos

Scataphagos

Proper "Price TA" would have had the longs out @ 120-130 for both.

Problem comes in when the trader presumes a dip to be a "noise counter which should be ridden-out". Lots of times it is, sometimes not.

This one was a "NOT"... and with unfortunate and extreme consequences.

The Lesson... If you trade a vehicle which has even the possibility of screwing you over big-time, you must trade it technically and conservatively. That includes anything on high leverage.

I've stated repeatedly... "If you trade on leverage, you run the risk of ruination... and it takes only one time to wipe out even 20 years of gains.... and possibly even more." If you didn't believe it before, you should now. This is not a one-off case!
 
Last edited:
gkishot said:
What puzzles me is why one was wiped out and another one not. Someone has any suggestions?
More...
My gut feel is SVXY is ETF so has to hold real assets unlike XIV which is ETN which is meant to replicate and has no requirement for holding what they want to replicate.
 
newdog said:
My gut feel is SVXY is ETF so has to hold real assets unlike XIV which is ETN which is meant to replicate and has no requirement for holding what they want to replicate.
More...
What assets do SVXY hold may I ask?

SVXY provides short exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration.

  • Designed for knowledgeable investors who seek to profit from decreases in the expected volatility of the S&P 500 as measured by the prices of VIX futures contracts.
  • Intended for short-term use; investors should actively manage and monitor their investments, as frequently as daily.
  • Does not track the performance of the CBOE Volatility Index (VIX) and can be expected to perform very differently from the VIX.
More...
I don't see real assets in this ETF except OPM?

Maybe you can help me out.

Thanks.
 
Its interesting to me that all these things are doing is selling some futures (or holding some futures). There is just a blend to have a 30-day maturity on average. I'm not sure I have a point, but I guess that its that I didn't figure that out until recently! Without knowing more, you might think its some cool, exotic product, but it doesn't really seem so knowing the underlying.

Thanks for link JackRab, that is the cleanest place I've seen their holdings, updated to date.
 
You must log in or register to reply here.
Back
Top