Looking To Buy Volatility – Volatility Has Crashed

Market euphoria has now lead to a complete and total collapse in volatility.

Volatility rises when people get scared. No one appears to be very scared as volatility is now at an “all time low” ( obviously correlation with markets being near all time highs ) – Get it?

Isn’t this about the time one starts thinking…hmmm….no one is scared, volatility at all time low, markets at all time highs….hmmm…..thinking, thinking….hey! Let’s start looking at buying some volatility around here!

Volatility Has Crashed

One can only assume we are getting very close to a reasonable bounce in volatility as – markets never change. Just when you think it’s safe…..boom – things head in the opposite direction.

Watch that Nikkei. Watch that AUD/JPY as well USD/JPY and add volatility to your short list ’round these levels.

A lil bit of UVXY here over coming days? I like it.

 

 

 

6 Responses

  1. AncientEvil May 15, 2017 / 6:18 pm

    Man…. ahh, UVXY… long? I hear you about volatility, but this is the same story as JNUG etc…
    I love convex bar-bell trades, as difficult as they can be an all, but volatility long – at least go with VIX Futures.
    Honestly, after being core short the UVXY shitshow for 4+ years, I covered all of it last week. So while I share your view and wishes, just a reminder of what this vehicle REALLY is all about.
    I truly fucking hope it works, man…

    • Forex Kong May 15, 2017 / 6:36 pm

      It’s a vehicle and yes yes…..not exactly “the best one” but hey!

      I trade Forex for a living. What’s a lil puny ETF gonna do? Bite me? No worries here.

      I look for things that MOVE…when they show the best possibility “Of MOVING”. Volatility…..short USD…..risk off…..etc – lots of trade vehicles available for those who want to take advantage. But you better be quick too!

      • AncientEvil May 17, 2017 / 12:53 pm

        Nice timing, Kong. Nice indeed. 🙂

        • Forex Kong May 17, 2017 / 1:36 pm

          And there it is!

          Thank you very much…I do believe we’re making money!

  2. few chairs mark it May 15, 2017 / 7:09 pm

    timing on uvxy and vxx has to be perfect. while the complacent market went sideways in january uvxy lost 33%.

    • Forex Kong May 15, 2017 / 7:19 pm

      Sideways is the killer for sure…and timing IS everything when trading these things.

      How’s my timing guys? Let’s have another go at it here this week!

      This 11.80 area looks good for a few shares…..then another lot if/when she pops!

      We can’t win if we don’t buy a ticket…calculated risk / great timing / excellent money management / keen technical eye – all this needed as well!

Leave a Reply to AncientEvil Cancel reply