Took a small profit on the VXX this morning after spotting hidden bullish divergence in the VIX yesterday evening. Opened a small position again on the pullback to support in anticipation of a small bounce the upper trendline of this descending sedge pattern. Holding off on opening long positions until this burns out tomorrow AM. LONG VXX SHORT market.
Just an update on how the VXX has slowly worked its way down and is now back to the same levels as January 2020.
If you look at the RSI levels, the is a higher low pattern that emerges before a spike. It looks like the same thing is starting to appear...
In downtrend Wedge,
at support line.
Prepare for SPY Gap Down.
I created a tool "MM_SMA_Swing" to draw swing in tradingview chart.
Each swing must cross SMA50.
This tool could help to draw trendline, and ignore the noise.
I am not a PRO trader. I trade option to test my trading plan with small cost.
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... for a 1.50 debit/contract.
Notes: With VIX at lows, opening a small risk one to make one bullish assumption trade in VXX with a 14.50 break even.
I generally don't like to take bullish assumption shots in volatility products, particularly ones like VXX and UVXY that experience contango erosion over time, implying that you're rowing against the tide with any...
The vix had a flare up from the mass confusion and frenzy caused by the huge short squeezes on AMC and GME. That is going to die down and continue to subside.
As this subsides, the vix, a.k.a. the Fear Index, is going to steadly decline. Short the vix. VXX is a good investment vehicle to play the vix through.
VXX spiked today obviously.
Do your own due diligence, your risk is 100% your responsibility. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Small incremental steps work : If you double a penny a day for a month it = $5,368,709. Good luck and happy trading friends...
*3x lucky 7s of trading*
VXX (Volatility Index) is starting to show bullishness which means volatility could pick up.
If VXX successfully breaks the rectangle, we can expect wild swings that could happen in equities (NASDAQ, SP500).
Prepare for downside if ever that happens for equities.
Falling Wedge Contraction Pattern, Cyclical.
(VXX) " ETNs are designed to provide exposure to the S&P 500 VIX Short-Term Futures, the Index is designed to provide access to equity market volatility through CBOE Volatility, the Index offers exposure to a daily rolling long position in the first and second month VIX futures contracts "