Volatility Increase in coming weeks Long

iPath Series B S&P 500 VIX Short-Term Futures ETNArca

Description

⋅ Jan 17, 2021 2:34 AM

The volatility index is in a downtrend similar to before the march correction. The blue lines are price targets/areas of resistance.

Within 1-2 weeks from this post:

The price will cross over the trendline or we will see more reversal candlesticks

The macD will cross

There will be a bullish divergence on MacD

This chart lines up very well with the chart I previously posted of UVXY which I will link.

Comments

gsrichar

⋅ Jan 19, 2021 2:25 PM

Keep in mind, VXX is a rolling volatility ETF and will continue its trend downward for the rest of time regardless of candlesticks, broomsticks, or fork twigs. Unless of course the fund breaks like the XIV a while back. VXX should be thought of as market insurance. Short selling it is like selling insurance to someone. On average you can buy it back later for less and make money, but sometimes you get screwed.

gsrichar

⋅ Jan 19, 2021 2:29 PM

@gsrichar, As a side note, if you're not hedging with VXX buying or shorting the VXX as a mid-term investment, then you're probably not doing it right. I don't think the VXX was intended ever as a buy and hold stock. Keep in mind it experiences 'volatility drag', which is its downward trend. This is related to the idea I mentioned above regarding short selling the VXX. It's like insurance and the downward trend is the average insurer winning.