Bookkeeping: Beginning Positions in iShares Barclays 20+ Year Treasury Bond (TLT) and iPath S&P 500 VIX (VXX)

By Trader Mark
10 September 2010 @ 09:59 am EDT

I am going to be using these 2 instruments as hedges to the downside.  Technically they are market neutral i.e. they are not 'long' or 'short' per se, but generally when these rally it means the algo's are selling the market and flooding into volatility or bonds.  So for our purposes they will be marked as 'short' positions.  This week has played out pretty much as planned other than the curveball Tuesday ... the market has drifted upward on almost no news as it is apt to do.  While this week was atypical we almost always start the week with a morning rally so we'll assume there is a gap up Monday and that should take us near S&P 1115... or it might happen this afternoon since everyone knows we surge Monday morning seemingly 90% of the Mondays since March 09.  Then from there it should finally get interesting.

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