Thursday, May 22, 2014

XIV at New High....5.22.14

I'll be on the road today to no post tonight...but early action in XIV has provided an opportunity to compare the weekly long term chart of XIV versus VXX (presumably its inverse).  Both are ETNs, so derivatives of futures and options and back  in 2010 I suggested that if you made one trade it would be to short VXX and hold forever.  Let's see how that played out and how you could have retired off that trade>>>>
VXX is SO BAD they have to keep reverse splitting it just to keep it alive.
A $2000 short on 1/1/2010 would have netted you $1965 as of today.
The beauty of VXX is that it is a short product by design so you don't have to incur the usual restrictions and trading requirements of having a short position.
Meanwhile, here's the comparative XIV chart>>>