HDGE, Inverse Stock Market ETF, New Record Low.

 

 

HDGE just recently recorded a new record low before it started to turn up again. This HDGE is a prime example how this great stock rotation can never happen. HDGE would have to keep grinding down and when it gets to $5  it would have a high probability of creating an inverse stock split.  The stock bulls are making us believe that HDGE is going below zero, which we know is impossible. I know the contrarians are buying on the way down, as my contrarian friend has already mentioned it to me.  They never buy their entire position at one time as that would be breaking every contrarian rule know to man. They buy with GTC orders placed incrementally lower and buying HDGE is just like shorting the main indices.

When HDGE takes off, then you can expect very volatile moves, as fear will produce violent reactions.    

The VIX is also starting to stir after it achieved new two year record lows. Between the VIX and HDGE it shows us that stock investors are still about as complacent as one can get. When the herd becomes this complacent, then it is ready for a potential bear attack. 

There is nothing to stop HDGE and the VIX to still head lower, in the short term, but it will keep buyers away as the majority will not buy low, they will buy once they see these two asset classes move up.