Volatility Ready to Spike (VXX, UVXY)
Submitted by SC on Thu, 04/26/2012 - 04:08
Tags:
The VIX has formed a tight bull flag pattern over the last two weeks in April, and a breakout would spike the VIX close to 23. VXX is one way to play it. The more aggressive UVXY could reach near $18.70 on a quick spike over a few days.
The S&P 500 should dip as well, but keep in mind a spike in the VIX would cement a bottom in the S&P 500. Therefore, VXX and UVXY are not buy and hold situations, but rather quick plays on volatility spikes.
Best of the Blogs
BlogDroid 600
Scanning and identifying the best blog entries every hour
- Even Nucky Thompson Wants to Speculate in This Tape | iBankCoin.com
- Trade Ideas For Wednesday | iBankCoin.com
- Reversal | ZeroHedge
- Will Wednesday’s Fed Minutes Spark Sell-Off? | Financial Sense
- Dudley Terrified By "Over-Reaction" To QE End, Says Fed Could Do "More Or Less" QE | ZeroHedge
- Easy Come, Easy Go - Equities Turn Red | ZeroHedge
- IRS Hearings II: The Steve Miller Band Plays On - Live Stream | ZeroHedge
Latest Headlines
Newsbot 3000
The most relevant financial news and articles from the Internets
- HP Bets on Google with the Help of Nvidia | TheStreet.com
- YALE LAW GRAD: Why I Came Out As Gay In A New York Times Op-Ed | Business Insider
- Advertisers Are Watching You: Inside The World Of Facial Recognition... | Business Insider
- ... | StreetInsider.com
- Goldman Sachs Is Now The Most Bullish Broker On Wall Street | Business Insider
- The Tracking Solutions That Could Lead An Explosion In Mobile Marketing | Business Insider
- Eurozone Manufacturing Data Comes In Better-Than-Expected, But Still Ugly | Business Insider
There is a very clean example
Submitted by SC on Thu, 04/26/2012 - 14:54.There is a very clean example of a bull flag on the VIX itself over the last two weeks. The chart in the article is VXX not the VIX itself. What is being suggested is not a black swan by any means, but rather the same type of spike in volatility that we have seen consistantly throughout April.
Not a Flag
Submitted by Anonymous on Thu, 04/26/2012 - 12:12.Does not look like a flag to me. This looks like the typical pattern of VXX apiking then melting down to see in this pattern the anticipation of another spike is dangerous. Buy VXX here at your own risk and pray for the black swan to arrive.