Daily Volatility Blog - Feb 1, 2018
Death, Taxes and UVXY price fall can’t be prevented
During the weekend, I wrote a blog
If you have not read it, I would encourage that you read it. In the last line in the blog, I had mentioned:
Remember, UVXY has fallen from $41 million dollars to $10 in seven years. So, like death and taxes, no one can prevent UVXY price fall. Because it is designed that way. Its is only a matter of time!!
And the moment of time indeed was yesterday when the volatility started getting reduced and UVX fall started.
Will UVXY continue to fall now? Is business going to be as usual now? Not so fast!!
We are attempting an indicator called BIA indicator. Basic design is done. We are testing it. Initial results are encouraging and yesterday, I had made multiple postings on StockTwits that when BIA indicator is minus 10, the UVXY will see a big drop. That indeed happened.
Now you might say, what is BIA indicator? What does B, I and A stand for? Can I go long UVXY based on BIA indicator? Do I have to pay a fee to see BIA indicator's real time value?
All we can say is from or end, everything is free. Our trades earn us good and unlike others we don’t charge for any subscription service.
We have always felt that going UVXY long intraday could add a definite advantage to the short volatility strategy.
So, if one is “short volatility long term” but is “long volatility short term” on certain occasions (where we have an edge), that would be a terrific combination!!
We are working hard on this, and will keep you updated. No doubt, what we are attempting is not easy. But it is not impossible either!!
Why I avoid individual stocks?
Facebook (FB) is good company and a good stock to own. Yesterday, they released results that beat expectations. Yet, the stock price fell dramatically. Later it rose and currently in pre market, it is high.
Individual stock names are subject to manipulation through various means – as explained in Chapter 2 of my book with Brennan on “Index Investing” available for free download at
If you have not read the book, do read it.
Thanks and Happy Shorting Volatility
Even if one life is changed by our educational attempts, we would consider our efforts in writing the book a success.
The material in this newsletter, the website http://IndexInvesting.xyz as well as in the book "Trading Volatility - Using the 50-30-20 Strategy" is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. As an investor, you are fully responsible for any investment decision that you make.