XIV & SVXY... An Extreme Lesson in TA

Discussion in 'Trading' started by Scataphagos, Feb 7, 2018.

  1. Proper "Price TA" would have had the longs out @ 120-130 for both.

    Problem comes in when the trader presumes a dip to be a "noise counter which should be ridden-out". Lots of times it is, sometimes not.

    This one was a "NOT"... and with unfortunate and extreme consequences.

    The Lesson... If you trade a vehicle which has even the possibility of screwing you over big-time, you must trade it technically and conservatively. That includes anything on high leverage.

    I've stated repeatedly... "If you trade on leverage, you run the risk of ruination... and it takes only one time to wipe out even 20 years of gains.... and possibly even more." If you didn't believe it before, you should now. This is not a one-off case!
    Last edited: Feb 7, 2018
  2. gkishot


    What puzzles me is why one was wiped out and another one not. Someone has any suggestions?
  3. cole_


    ProShares has a higher risk appetite than CS.
  4. newdog


    My gut feel is SVXY is ETF so has to hold real assets unlike XIV which is ETN which is meant to replicate and has no requirement for holding what they want to replicate.
    jys78 and cole_ like this.
  5. ironchef


    What assets do SVXY hold may I ask?

    I don't see real assets in this ETF except OPM?

    Maybe you can help me out.

  6. JackRab


  7. Saltynuts


    Its interesting to me that all these things are doing is selling some futures (or holding some futures). There is just a blend to have a 30-day maturity on average. I'm not sure I have a point, but I guess that its that I didn't figure that out until recently! Without knowing more, you might think its some cool, exotic product, but it doesn't really seem so knowing the underlying.

    Thanks for link JackRab, that is the cleanest place I've seen their holdings, updated to date.