I am dabbling on the dark side here, and I know so little about it I am essentially in the dark as well.
The SPXU is inversely correlated to the SPX, but recent trading activity shows that the SPXU moves by bigger daily % values than the SPX.
The VIXY is an ETF that is related to short term volatility. Hence, my understanding is that if you expect that the SPX will be volatile, erratic, but not trending in any particular direction, then open a long trade in the VIXY, or one of its longer term ETF colleagues. Volatile, erratic, but not trending in any particular direction .. sounds familiar. That is, sounds like the XJO over the last 5 or 6 months. However, during this same period the SPX has been in a gradual incline, albeit until recently.
How can I use the VIXY and the SPXU? Perhaps later this week open long trades in both of them. Then if I get the SPXU long trade entry wrong, the VIXY trade may compensate for it, but if the SPXU takes off, perhaps the VIXY will take off as well for a win - win scenario.
Anybody here traded the VIXY before, or considered a VIXY and SPXU combo?
What about the VIXM, how does it trade compared to the VIXY?
