VIX, VXX & General Stock Market Analysis

As per the request for analysis on VXX from @lkeno in the trading room, my charts on both $VIX (spot VIX, CBOE Volatility Index) and VXX (iPath S&P 500 VIX Short-Term Futures ETN) are below. As the underperformance/tracking error of the volatility/VIX tracking ETNs are among the worst of just about any exchange traded products out there, I also include the chart of the spot VIX ($VIX) in my analysis for the VIX tracking ETNs. The abysmal underperformance, particularly when holding the VIX tracking ETNs for more than just a quick trade, can easily be seen in comparing these two year [...]

2017-05-26T11:36:09+00:00May 26, 2017 11:19am|Categories: Equity Market Analysis|Tags: , , , , , , , , , |3 Comments

Trading The VIX

I was just asked the following questions & figured that my response was worth sharing: Q: What's your opinion on trading VIX? I'm looking at TVIX, which is 2x VIX, currently pretty low at $8.30s. I was wondering if it follows the same charting principles and indicators as normal ETFs? A: Let me begin by answering the latter question; Yes, the VIX can most certainly be traded successfully using technical analysis (charting) as other financial instruments such as stocks, futures, etfs, commodities, etc... As an example, this 120-minute period chart shows just how well the $VIX trades using technical analysis: Buy on dips to [...]

2017-03-08T21:20:14+00:00Oct 9, 2015 10:54am|Categories: Equity Market Analysis, Trading Tips|Tags: , , , |Comments Off on Trading The VIX

Trade Updates

I've been working on restoring some balance to the trade ideas lately and although quite a few longs have been removed since the start of the new year (hit final profit targets or stopped out), I've been able to add quite a few more to the Long Setups category.  As that has been my primary focus lately, I'm going to take some time to update the Short Trade Ideas today, possibly removing and even adding or highlighting a few. Just an FYI, I noticed that the VXX long trade was still showing under the active trades category although it exceeded the [...]

2017-03-08T21:21:52+00:00Jan 23, 2013 10:35am|Categories: Completed Trades - Long|Tags: |Comments Off on Trade Updates

VXX stops

VXX is trading slightly below the suggested stop parameter of 26.90 in pre-market trading due to the fact the futures are indicating a slightly higher open.  Many traders, myself included, will often wait until the first 30 minutes or so of trading to let the opening imbalances in the market settle before establish new positions or closing existing positions.  Obviously, this is not a luxury afforded to many part-time traders who work and not able to use manual stops but those who entered a VXX long yesterday might want to wait until shortly after the open before entering (or cancel & [...]

2017-03-08T21:21:53+00:00Jan 9, 2013 9:17am|Categories: Completed Trades - Long|Tags: , |Comments Off on VXX stops

VXX long

With the $VIX at multi-year key support and just about all major stock indices at or near key overhead resistance, I am adding VXX (VIX short-term futures etf) as a speculative trade idea.  As I recently posted, my preference (and current personal positioning) is to use VIX options or futures to trade the VIX but due to the complexity of options and futures, plus the fact that many who follow the site may not have any experience or even the ability to trade futures or options in their account, the VXX is probably the best and one of the few alternatives [...]

2017-03-08T21:21:53+00:00Jan 8, 2013 1:14pm|Categories: Completed Trades - Long|Tags: , |Comments Off on VXX long