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
- Gold Tumbles Most In 6 Weeks As USD Surges | ZeroHedge
- Consumer Sentiment Bounces Back for August | Financial Sense
- Japanese Household Spending Slumps 5.9%; Cries for More Monetary Stimulus | Financial Sense
- Employers Aren’t Just Whining: The “Skills Gap” Is Real | Financial Sense
- Frontrunning: September 2 | ZeroHedge
- The US Guide To Middle-Eastern Terror Groups (In 1 Cartoon) | ZeroHedge
- Markets Signaling Return of Economic Weakness in China | Financial Sense
The most relevant financial news and articles from the Internets
- 10 Things In Tech You Need To Know Today (AAPL, MSFT, GOOG, TWTR)... | Business Insider
- The Best Business Schools of 2011 | BusinessWeek
- Williams-Sonoma Earnings: What Wall Street's Saying | TheStreet.com
- An NFL Player Got A Tattoo On His Face To Keep Himself From Ever Getting A Normal Job | Business Insider
- Book Review: <em>Thinking, Fast and Slow</em> by Daniel Kahneman | BusinessWeek
- Here's How Upgrading To iOS 8 Could Mess Up Some Of Your Apps | Business Insider
- US air strike in Somalia targeting Shebab leader:... | Business Insider