Last week's foray with the UVXY was marginally successful, but the ultimate objective was not achieved. That is not necessarily a problem if one adheres to basic position management. As I followed up with on Thursday, I take a big position at the original entry and then look to peel it off and downside it as it gets up over 10% for me. The objective at that point is to a) get stopped out if it comes back in, or b) to let the remainder ride for more upside if the general market gets into a steep slide. I would hope that anybody playing the UVXY last week at least got out with a small profit.
The UVXY is by nature volatile itself, and one has to be ready to play it as necessary. I got another long entry on the UVXY this morning, down closer to 6.15. It's up a pinch currently, but we'll see how this plays out. I will campaign this over a period of time IF I think the market may be vulnerable to steep pullback. Right now, I tend to think this whole Archegos Capital liquidation thing may just be the tip of an over-leveraged iceberg beneath the surface of this market.
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