I'm looking to LONG the VXX , which is a that tracks the short-term VIX . This is a swing trade and might take weeks or months to play out. Here;s what I see:
1. For the basket of stocks that make up the S&P500 , we are seeing less and less of them making higher highs on a 52-week average
2. Tim West does an excellent summary of the factors affecting the S&P500 here:
1. On the monthly chart, the S&P500 is hovering around the upper parallel of the dating back to 2003 .
2. On the , price was rejected off R1 and did not manage to hit the blue upsloping . This shows weakness.
3. When is suppressed, it decreases marginally lesser, when it expands, it accelerates at a faster rate. This asymmetric behaviour is a primary reason for taking on this trade.
4. Lowest low on the VXX sits at 25.5, giving strong support for this 2.7:1 reward to risk trade.
Stop Loss: 24
Profit Target: 37
I suggest risking no more than 1% per trade by adjusting your position size accordingly.
Check out my performance record of all published trades on TradingView: http://tinyurl.com/klkd2vr
Update - 8 Apr
Changing stop loss to 22