Trade Alert - (XIV) August 22, 2017

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Trade Alert - (XIV)- TAKE PROFITS

SELL the Velocity Shares Daily Inverse VIX Short Term ETN (XIV) at $80.65 or best

Closing Trade

8-22-2017

Portfolio weighting: decrease from 20% to 10%

Number of Shares = 140 shares

 

At my advanced age, you don't pass on a 48-hour 13.76% profit, because you don't know if you'll ever see another one like it in your lifetime.

So I am going to take profits on half of my position in the Velocity Shares Daily Inverse VIX Short Term ETN (XIV).

Since Friday, the Volatility Index (VIX) has utterly collapsed from $16.00 to $11.85, an eye popping decline of 29.93%. It is the sharpest decline in the (VIX) of 2017.

That has caused the (XIV), a short (VIX) ETN, to rocket from $71.77.

All we needed was for the president to stay quiet for a couple of days, or at least stick to his script, and I knew stocks would rally, and volatility would collapse. That is exactly what we got.

I am keeping my remaining position as a hedge against the next tweet.

This is the 20^th consecutive profitable Trade Alert in recent months, taking our year-to-date performance up to a nosebleed 35%. Our trailing 12 month trailing profit just topped 51%.

You get a huge embedded tailwind with the (XIV) with the massive contango in the Volatility Index (VIX), the differential between front month and far month volatility, which also helped with this trade.

After spending the year stuck in in the $9-$16 range, it was nothing less than mind blowing to see it spike up to $16.00 last week with a minimal recent move in the S&P 500 (SPY).

That took the (XIV) down from $97 to a low of $70.

This is a not a leveraged ETN, so even if volatility remains heightened for a while, the downside risks for the (XIV) will remain small. As an ETN, there is also no expiration date to worry about.

There are no options on the (XIV), so this is one of the simpler ways to play for a (VIX) collapse.

For a detailed description of this 1X short volatility ETN please click here for the issuer's website at http://www.velocitysharesetns.com/xiv

The learn more about the Volatility Index (VIX), please click here for "Volatility Here is Peaking" http://members.madhedgefundtrader.com/buy-flood-insurance-with-the-vxx/

Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.

Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.

The best execution can be had by placing your bid for this ET in the middle market and waiting for the market to come to you.

Here are the specific trade you need to execute this position:

Sell 140 shares at...................................$80.65
Net Proceeds:...................................$11,291.00

Profit: $11,291.00 - $10,047.80 = $1,243.20 in 2 trading days.

I Bet the Next Big Volatility Move was Down