My personal portfolio:
Comment of the Day

May 17 2011

Commentary by David Fuller

My personal portfolio:

VIX long trade rolled forward

David Fuller's view Details and charts are in the Subscriber's Area - My Volatility Index (VIX) (weekly & daily) long expired last night. As this was on automatic rollover, my May position was sold for a loss at 17.95 against my purchase at 18.43 on May 5th and a June long was simultaneously purchased at 19.08, including spread-bet dealing costs.

This is a small position as I rarely trade it. VIX should appreciate during a stock market correction but given its shorter trading hours and monthly contracts, I feel better served by stock market futures contracts. Therefore I intend to trade it out quickly in the event of any near-term gains.

This afternoon, I have introduced breakeven stops for all of my S&P, DAX and NDX stock market index futures short positions. These are tighter than I would ordinarily consider but an annual holiday at the Hay-on-Wye Festival commences on 25th May, so I really should be reducing rather than increasing short positions. Also, if stock market indices fall further and begin to look technically oversold, I am likely to commence taking profits, starting with my least in-the-money positions.

My 30-year Treasury futures shorts, currently in the June contract, were poorly timed. Fortunately, they have been mostly hedged by other positions recently. Meanwhile, I remain a long-term equity bull but a bond bear. Neither of these asset classes is likely to disappoint us with a lack of volatility.

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