Why VXX exploded and what it means for volatility (VIX)One of the big market events today is the explosion in price of AMEX:VXX which according to the issuer Barclays has nothing to do with Ukraine or market events. I think it is tangentially related in some way to the market conditions but what does this actually mean for the near future of volatility? I look at TVC:VIX as a measure of the "fear index" of the S&P500. The VIX can be very useful in timing market tops and bottoms as it represents maximums of emotion. The VIX is telling us something about the current lows of the market and how the recent correction might soon be over.
VXX
Increase in VOLATILITY on the horizon? It's 1120am MST on 2/28, and I am expecting a further market decline. I already have a VXX call option in play right now and am expecting this position will end up in the money.
It seems Russia/Ukraine war is starting to heat up despite the meeting between the two countries today.
From a technical analysis perspective, there is another inverse head and shoulders forming and the 50 SMA is crossing over both the 100MA and 200MA, which seems to be a bullish indicator for VXX and a bearish indicator for the stock market as a whole.
I hope I am wrong on this one...because that would indicate a de-escalation of the war...which we're all praying for.
HEDGE your BTC and ETH positions... VXX is about to MOON?!!!In my opinion, buying a VXX weekly call option is an amazing way to hedge your crypto portfolio against the market volatility resulting from geopolitical and macroeconomic concerns.
Unless you live under a rock, you've reeceived incessant push notifications regarding the Russia/Ukraine geopolitical conflict and the inflation-driven macroeconomic concerns.
Smart money has already reallocated a sizable percentage of portfolio into stablecoins or cash... But why not CAPTURE ALPHA available from the current market volatility?
Inverse head-and-shoulders patterns are used by some traders to call a downtrend reversal. It's not always a reliable indicator. However, it's my belief this indicator is MORE reliable on the with VXX chart- which is perpetually in a long-term downtrend.
Look closely at the VXX chart, and you'll see TWO inverse head and shoulders patterns:
1. One forming locally over the past couple weeks
2. One that started forming at the end of January
I bought a weekly call option expiring on 2/25 with a strike price of 24. With a target of around 26.50, I'd be shocked if I didn't close this position, or have it expire, IN THE MONEY.
Do YOU AGREE or DISAGREE? Let me know in the comments!
Weekly Market analysis with some commentary on cannabis sect Looking for a continuation of a downtrend on the VXX with a possible Head n Shoulders pattern that will complete in the following 2 weeks or so. Will just have to see if it plays out.
Market Analysis and Forecast for 2019I think the markets have scaled back is because of overall debt. In the video I explain the difference between the 2009 crash and today's market downtrend.
