Almost Ready to Trade Volatility
Its almost that time again fellow Masters, we've done this trade countless times -- Buy the iPath S&P 500 VIX Short Term Futures TM ETN (VXX) when it hits a 12 month low. Only 3.8% more and we execute this trade again.
The VIX once again has fell below its 50-day moving average. As you know volatility products such as VXX track VIX futures contracts, not the spot price. The VIX hit 16 on Friday (April 27th) and the last time it bottomed was at 14 in March.
Be patient with this trade, no need to be a hero and come early to the party, the VXX could tank another 10% from this level. We wanted to make you aware and when the VXX hits a new 52-week low, its time for action. Do not hold the VXX for more than 5 days, its swings too much.
MASTERY Bottom line:
We prefer to buy the VXX after it falls to $14 a share and please use caution. Don't bite off more than you can chew.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Citi Has One Unpleasant Chart For Anyone Thinking Of Buying Twitter | ZeroHedge
- All This Market Calm Feels Like Mayhem | ZeroHedge
- Wells Fargo Or The Fed: Who's The Bigger Fraud? | ZeroHedge
- US Home Price Growth Slowest In A Year | ZeroHedge
- $356 Billion Fund Manager: "Now Is The Most Treacherous Time Ever. I've Never Seen This In My Career" | ZeroHedge
- Bond Market Knows What Fed Should Do | Financial Sense
- "Foot-In-Mouth" Trump Vs. "Frog-In-Throat" Clinton: First Presidential Debate Begins - Live Feed | ZeroHedge
The most relevant financial news and articles from the Internets
- Deutsche Bank shares crater to a record low (DB) | Business Insider
- 10 lunches you can pack in less than 5 minutes | Business Insider
- Look at how many executives have left Twitter over the years | Business Insider
- Here's what Elon Musk might reveal during his big Mars colonization... | Business Insider
- America's Best Young Entrepreneurs 2011 | BusinessWeek
- How to chill any wine in 7 minutes flat | Business Insider
- REMITTANCES EXPLAINED: How funds are transferred across borders, and why digital is poised... | Business Insider