Better to be right on a "timid" position than no position at all.
I have been waiting a long time for this volatility, and I can see some great opportunities coming. Considering how much strength the SPX500 has shown, it will be interesting to see if it can correct into the 11-19% zone of corrections. I have my USD cash at hand but will not use it for investment positions until the next stock bear market is confirmed. At that time I will buy into ETFs that should do very well in the next bull market. Re. trading positions I will go long if I get a buy signal on the SPX500 in the short to medium term.
My most challenging trade by far is going to be the SVXY. I have been entering it conservatively and I just bought another lot at 51 (the high was above 90). The VIX hit 30 last night which doesn't happen that often.
I don't have a very large position in it, mainly because it is a highly speculative instrument and could drop like a stone to much lower prices if we have a sustained period of volatility and how that can impact the VIX short dated futures for a 12 month period. Also we don't know which exchange traded products will perish in the next bear market, IMO some of the "exotics" and less liquid ETFs will go belly up. If they couldn't grab any market share when times were good, they have no chance when liquidity dries up.
