My UVXY strategy, if it be a strategy, continues to work for me. After UVXY gapped up on open last night I upped my lower stop to protect profit and went to bed. Due to the SPX's strong recovery last night my UVXY stop was hit for a 15% profit over 3 nights. Hence, not the 50%+ move that I have been aiming to trap, but not too bad.
The SPX candle chart has been left with a fairly strong hammer after last night. Hence, perhaps the SPX bulls have a little further to run for now. I will be looking to re-open UVXY long if it gets back down to 18 or less, and average down if need be, for another attempt at the summit. The UVXY chart moves so much that efforts to protect profit can result in bigger gains being missed, but when lucky you may trap a sustained run such as the 104% move from 9-Oct to 15-Oct-2014.
