Our flat signal on XIV for Tuesday was a game changer as XIV dropped 92% overnight, was halted twice upon resumption today and will be delisted and terminated on Feb 20th. XIV longs got obliterated, one hedge fund down 65% and others in a similar pickle, and many, many other stories of complete balance sheet collapse. Unexpected to be sure but the ETNs are a fickle bunch and have to be traded accordingly. XIV is down $ 1.20 after hours with little hope of any recovery of merit.
We are done with it after a nice risk adjusted run of several years.
For now we'll focus on SSO, the ProShares SPY X2 Ultra.
We don't get neat the kick of XIV but again our focus is all about risk management.
Below are the current trend following and mean reversion model metrics.
Note that both signals are flat...an unusual situation. The mean reversion mode has a much better paradigm and TrendX chart (above the zero line)
