Buying VXX or HUV. Again.

On May 22 we bought VXX (or HUV for those who prefer a Canadian equivalent or currency diversification).  On June 20 we booked over 20% gains on the position in just one month. 

A couple days later, and only slightly higher, both topped and have since plunged to new lows for the year.  Nobody seems to want this hedge, so we'll buy it back on what seems to be the cheap.

VXX was last at $15.83, HUV at $8.77  This will be a full position, with no stop in place for now.

Suggested calls this time are the December $18 calls, last traded at $1.75

Certainly markets could continue higher in the coming days, weeks and months, however to us that idea seems something between wishful thinking and just plain greedy.  Betting against the fantasies and greed of the aggregate of market participants is usually a prudent and profitable thing, as we've demonstrated so often over the years via this blog, so we're comfortable once again adding VXX. 

The chart looks very ugly, so it's purely an instinct call:

We continue to hold existing positions in VXX and SH bought earlier this year (ref: first link above).

 

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