Thursday, June 20, 2013

50% Long XIV TNA (edited )

Sold out of my shorts too soon this morning. At the time, I knew TZA would go higher and yet I ignored this knowledge in favor of some profit taking. Trading is very tricky and plays games with your head.

Very pleased to see both systems nail this move. But now the mean-reversion happy system otherwise known as the CCI is going long today. The superior JTS is not and will instead offer up a "cover" signal and head to the sidelines. So the JT Composite flips to 50% long XIV. Despite the 20%+ spike in the VIX, futures remain in a weak state of contango (just barely) thus the XIV for the long trade. If I were taking a long trade on the close, I would personally opt for TNA but that's just me. I'll be sitting this one out in cash. Another down day tomorrow would almost certainly flip the JTS long but I'm getting ahead of myself. Sit back, grab some popcorn and relax in cash for now. Take care and congrats to all the shorts!

 Edit: Vix futs slipped into backwardation after my post. System will use TNA rather than XIV for this long position. Thx.


  1. I went ahead and got a small position in XIV. I may live to regret it, but a drop in VIX tomorrow would help...

  2. Well, I suppose knowing backwardation reared its ugly head would have kept me out of trouble...

    but oh well, that's what I get for jumping the gun on speculative trades :-(

  3. Well, RMI, XIV is up today. So all is not lost.