Thursday, July 17, 2014
At the close, I did a dumb thing and shorted $VIX
Well, for no particular reason, Wall Street Whitey was dumping US stocks at the close today. $VIX was up by +3.5SD.
So I flipped out my PG for a half-day $400 win, dumped out my new Japan position at a small loss, and threw the kitchen sink into HVI, the Canadian-listed short VIX ETF.
I figure Whitey was just avalanche-puking on the Russia news. Russia should admit the mulligan by tomorrow's open and the situation will be more clear. People will feel better tomorrow, they'll realize that the killing of three hundred civilians won't affect Corporate America's profits.
I've never seen VIX gap up from a +3.5SD close, but if it does, I'm doubling down on that bitch.
If it doesn't gap up, it's a quick win.
Now let's hope Pooty-Poot doesn't double-down on the stoopid, making the $VIX term structure invert. He's already made the mistake of being a co-conspirator with idiots; hard to believe he's an ex-spook. Proper spook thing to do is cut the idiots loose and let them dangle.