iPath Series B S&P 500 VIX Short-Term Futures ETNArca
Description
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Playing for the red arrow, but I will take the green, just a velocity and direction play here, note the purple arrow previous moves after bottoming.
Comments
damoonmotamedi
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Your analysis is really sophisticated for my simple thinking brain.
What is your estimate on SPY downside for VXX to hit $33 target?
claydoctor
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If VXX reaches the TGT 33, here's the math... VXX is 3X the VIX, which represents the inverse equities markets, or SPY, as an example. VXX rises 18% to 33, which inversely would represent a 6% correction in SPY, which just happens to land it right at the hugely significant horizontal support of 198. That's a lot of "IFs" but if it happens it will be perfect trading.
damoonmotamedi
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Thanks for your clear explanation. My target would be $206 on this trade since it was significant resistance coming up here.
What is your estimate on SPY downside for VXX to hit $33 target?