VXN (NQ's VIX) Stopped by High Liquidity 7/24/2020
VXN at the 4 hour view. The VXN was stopped due to high liquidity in the markets right now.
Unlike the VIX, I do not expect the VXN to reach flag support (dashed green line) any time soon. NQ has reached a top from July 13th. How long will this top last? Most likely for the rest of the summer. Will it be THE top? I don't know.
There are so many calls in the NQ right now that it is aggravating the VXN. Robinhooders got the alert to go long on tech. Guess who also gets those alerts? Institutions do. They're waiting for Robinhooders to pour into the NQ and tech stocks then sell the shares. Why? Distribution Cycle. Institutions will sell overextended and bloated sectors to re-allocate them to undervalued sectors such as financials or transportation. In the short-term, it harms the new trader who treated trading as a game. In the long-term, the Distribution Cycle keeps the economy going.
What would businesses do if they don't have banks (financials), shipping (transportation), or merchandise (industrial)? Go under.
Unlike the VIX, I do not expect the VXN to reach flag support (dashed green line) any time soon. NQ has reached a top from July 13th. How long will this top last? Most likely for the rest of the summer. Will it be THE top? I don't know.
There are so many calls in the NQ right now that it is aggravating the VXN. Robinhooders got the alert to go long on tech. Guess who also gets those alerts? Institutions do. They're waiting for Robinhooders to pour into the NQ and tech stocks then sell the shares. Why? Distribution Cycle. Institutions will sell overextended and bloated sectors to re-allocate them to undervalued sectors such as financials or transportation. In the short-term, it harms the new trader who treated trading as a game. In the long-term, the Distribution Cycle keeps the economy going.
What would businesses do if they don't have banks (financials), shipping (transportation), or merchandise (industrial)? Go under.