The VXX is a stock created to track volatility in the stock market. Basically, the stock acts as a form of insurance. Its there for when the stock market crashes. The stock goes up when the overall broader stock market falls. In times of uncertainty or during an economic decline the volatility (VXX) will rise while investors sell stocks. Currently we are seeing uncertainty (government shutdown, China trade war and rising interest rates) we do not have economic decline. I created a trend line on the VXX once the Federal Reserve had its meeting October earlier of last year. Since then, the pattern seems to hold on that particular trend line. Today was the third time price had reached the trend line in a couple of weeks and I thought it would be a good idea to pay attention. It would be a fair assumption that if the White House doesn't open the government or China trade deal cannot be reached the VXX index will move up like it did twice in the last 3-4 months. It would make sense to hold shares of VXX until either the government reopens or there is a resolution on the China trade deal.
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