The pricing of the VIX futures tracking ETN VXX no longer reflects reality.
Barclays has halted new issuance of both the VXX and OIL ETNs.
Existing shares of VXX are being bid up far beyond the movement in the underlying futures market.
As I mentioned in a previous post, (linked below), I believe the VIX is setting up for a breakout to the upside.
I...
These fairly new ETPs, such as UVXY, VXX, SVXY, etc. will likely lead to volatility buying in which we've never seen before. People will be using these ETFs to hedge the risk of a larger stock market correction happening, leading to a continuation of the exponential increase in volume that these products have seen since their inception. This exponential increase...
Pure technically we have seen the weekly VIX candle breach the Bollinger Band 6 times in the last 11 years with a syringe like pattern (more than 70% upside). In my opinion this pattern happens when people are in panic mode. 5 out of 6 times VIX dropped significantly within 6 weeks. The exception (rectangle shape) is the 2008 crisis. My SL will be set at the top...
VIX and the Financial Conditions Index are the same charts. Rising volatility correlates with falling stock prices because of a tighter liquidity environment. Expect more downside.
www3.nd.edu
This is a very basic explanation. Can be applied to TSLA convertibles or any others fitting desirable criteria.
Monetised vol., yield and income generation can result in hypothetical annual returns above 6% without prime broker leverage.
I did this once before last year but I thought it is good once again to repost how I see the market, since inception in the early 1900's to today. From my perspective, we are nearing the completion of a supercycle 5th wave. And as you can see from the chart (which trading view does not go back to the beginning...see a historical chart if you want), supercycle...
This is my best estimate. While we could possibly already be in the C wave down and finishing up on a minor wave 2....I am thinking that the FED may continue to do the same as before and prop the market up into the FOMC meeting on March 15th. This is just a guess. If that is the case then perhaps we can reach near the 2800 level again before starting a 5 wave drop. GL
SO obviously we are in the supercycle 5th wave. Inside that, we are in the 3rd wave. Inside that 3rd wave we have just completed the smaller degree 4th wave (even thought it felt big) and are about to trek up for that smaller degree 5th and complete the larger 3rd wave. The drop for the larger 4th should be huge and impulsive just like this last drop. I was...
Bold move, over exposure. You ready?
Short VXX which tracks the VIX.
Buy XIV which is inverse to the VIX.
Buy SPXL which is a 3x levered SP500 ETF
Short SPXS which is a 3x levered short SP500 ETF
If this isnt just a correction were screwed, if not, then congrats.
Eth btc and Neo have now returned to critical areas. They are all at resistance.
I believe that all markets are connected to some extent.
We saw what happened with US equities over the past few days. Volatility was very low (reflected in VIX ETF ) . Many were profiting from XIV the inverse ETF. When one side of a trade gets too crowded then opportunity presents on...
