Friday, January 21, 2011

Is volatality going to return?

It sure looks like we are going to see some mini wild swings which would benefit ETNs like VXX. The VXX is an ETN designed to track VIX futures. Investing in VXX is essentially equivalent to exposure to daily rolling long position in the first and second month VIX futures contracts. An investment represents the implied volatility of the S&P 500 at various points along the volatility forward curve. What is the relationship between VXX and VIX? Click here to read more.

I just bought Feb 2011 $32 calls expiring on 02/18 for $2.60. It's down a bit after I bought usual, right? lol. It's my personal opinion that markets could pull back at least 2% between now and Feb 15th. I hope I am right.

A general Caution and Advise --As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!


  1. What's your target on VXX?

  2. I am eagerly waiting for market correction but that is not happening. When it comes it just comes and it will get really nasty when everyone run for the exit. This market is definetly overbought. I would not take any long positions until I see a correction.

  3. Opinion on TIII? I feel like it made a bull trap formation at a top of $3.57. Sticking with it but I have a tight stop loss at 3.35. There seems to be come congestion around 3.42 and I am hoping to see that turn into a support area. Next resistance would be around 4.00 if it maintains its uptrend.

  4. I totally agree with you and there is no change in my initial target of $4. In general markets seems to be in a overbought zone. I would not buy anything here until I see at least 5% correction.

  5. Is still anyone in GENT. It hit close to $10 recently and was alerted on 09/26/10.

  6. hI Mr Incredible,

    Are you still positive about OSN? Since you posted about it, it has only going down ... I'm looking for a good buy opportunity here ...RFMI is not better :o(

    Thanks for Urg, call at 2.12 and still holding it till 3.5 ...

  7. OSN is the only worst pick that we had in a while. I am out of it with a quite a bit of loss :( I am not going to touch it until I see the real players getting in it. I apologize for this call. You've got ot wait at least few months for RFMI to pick up. Do not expect MTSL or OINK type of return in it. URG had a great run on Friday.

    VXX is the only stock I will be actively playing for the next several weeks. Like I predicted, the fear came back to the market and we are going to see a great amount of volatality in the market. I am still holding my Feb $32 calls and I bought March $27 puts expecting the markets will come back to normal in the next few weeks. In my honest opinion Egypt issue should resolve soon and once disturbances in that country are subsided, it will reflect on other countries that just started revolution. I do not think western countries will allow middle east to continue it forever..we will be having some solution soon.


Who is Mr.Incredible?

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Mr.Incredible is a Momentum/Technical Breakout player who trades small/micro cap plays and who saw a 600% Growth since 2006, Yes even in this down market. I am going to post my real trades (including profits/losses) soon...As a general caution and advice Please start with a small position and always keep your stop losses in place just in case....As usual Do your DD before investing. Thank me for your profits and don't blame me for your losses because you are the one who pulled the trigger!!!