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) - SELL TAKE PROFITS
SELL the Velocity Shares Daily Inverse VIX Short Term ETN (XIV) at $81.45 or best
Closing Trade
8-22-2017
Portfolio weighting: 10% down to 0%
Number of Shares = 137 shares
Given the extreme move down in the Volatility Index (VIX) today, I am going to take profits in my remaining 10% position in the Velocity Shares Daily Inverse VIX Short Term ETN (XIV).
The value here is to have dry powder for the next (VIX) spike and (XIV) dump, or to go into another position in any other asset class.
I think what volatility is doing here is normalizing. We are not going back to the $9 handle, which prevailed a few weeks ago.
Instead, the new (VIX) low is probably in the $10-$11 range. That means taking profits here in the (XIV) while the (VIX) is at the current $11.62 is prudent.
Remember, August isn't over yet, and September is no piece of cake either.
We may still have some tough sledding ahead of us.
In this crazy world we now live in, we are always one press conference away from another disastrous day in the stock market.
This trade gives us an additional 11.49% profit in two trading days.
These two trades take us back from a 100% to an 80% invested trading book.
For a detailed description of this 1X short volatility ETN please click here for the issuer's website: http://www.velocitysharesetns.
The learn more about the Volatility Index (VIX), please click here for "Volatility Here is Peaking" http://members.
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 137 shares at...................................$81.45
Net Proceeds:............................................................$
Profit: $11,158.65 - $10,007.85 = $1,150.80, or 11.49% in 2 trading days.
I Bet the Next Big Volatility Move Was Down
