Kates, trouble with FAZ is that the margin is too high to make it worthwhile. VIXY looks about the best 'value' around for me.
Which brings me back to SPXU at 5% margin.
Earlier in this thread I suggested that there might be other correlations to the VIX eg. 10yr bonds. The reason I asked is that if there is some form of disconnect between the VIX and the S&P500 then playing the VIX is not a covert play of the S&P.
It's an unusual market created by Central Banks in the effort to buy time so what you think should happen just may not for completely unrelated reasons.
I'd look at trading both VIXY and SPXU as two related but slightly disconnected trades. Past performance looks impressive but markets have become so disconnected from the past ANYTHING could happen.
Small trades at the smallest buy in price. The gamble is, as Flem said, was this last market movement the correction or is there something bigger coming. My weekly charts for Europe, SA, Asia mostly look sick. If markets move up only when Central Banks announce another round of QE then something will give.
This is a game of extreme patience and positioning. I have small cfds over a number of markets and will collect more as analysis suggests.
