This year is definitely going to be a very volatile year. The year has started off with a global market selloff after China produced a weak manufacturing data. Sharp increasing losses from China's Shanghai Index that triggered a new circuit-breaker system forced authorities to halt trading for the rest of the day on the mainland. The new circuit-breaker system was developed as a measure to prevent wild swings. A trigger in this new system will create more harm than good and build massive volatility as nervous investors will try to close positions out of panic before things get worse.
I'm definitely bearish for the day and positions for the day will include $UVXY $TVIX.
Cheers to a New Year!
I'm definitely bearish for the day and positions for the day will include $UVXY $TVIX.
Cheers to a New Year!