This year, really since late last year, Wall Street has found a new way to ramp/manipulate the market, they seem to have stumbled on it when the debt ceiling fiasco was resolved and hedges for the current month (back then), were rolled forward. Instead of buying AAPL or the most heavily weighted stocks in a particular average, the target was the VIX.
Today the Vix didn't seem to have that manipulation, in fact it either held it's expected correlation or performed even better, at least until the last minute of the day, OR THEREABOUTS....
This is why I said it held up well, at point "B" we have a higher high in the SPY than point "A", yet the VIX has a higher reading at point "B" than "A" which is against the natural correlation for the most part and much different than some of the VIX manipulation sen over the last month.
But then.... A plunge in what appears to be the last minute of trade in the VIX, but upon closer inspection...
The "Plunge" was actually the last 9/10ths of a second and that's because that's the smallest time increment I have, I'm sure NANEX could trace it to the last one/one millionth of a second, which may explain why the ETFs like VXX, UVXY and XIV were totally unaffected.
In any case, UVXY is trading higher than the opening of the position, about 6 cents away from the entry.
I'm going to update the charts and daily scan data and I'll report back, I heard from so many of you who took the UNG trade and made decent money on it today and I'm very happy for all of you.
I think if you use options in a way they
weren't designed to be used, you can actually do pretty well with them. I think it's only when you hear the stories of the 400% gains that you start playing options like a lotto ticket and rather than take advantage of the leverage they have to offer to make a so-so trade a great trade, you end up turning in to a speculator or gambler.
More coming soon, just have to update the scans and daily data.
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