Once again cue the VXX
Its that time yet again -- the iPath S&P 500 VIX Short Term Futures TM ETN (VXX) just hit a fresh new 52-week low. You know the drill, its time to buy some VXX as a protection should fear and panic enter into the market (again).
We point this out every time it happens (click to review) and we stand by our recommendation of buying some VXX to hedge your portfolio. Of course the rally could keep going and volatility can continue to fall. However we are approaching the bottom of the VXX and its a big warning sign for traders and the Powers-that-be that control the market.
Fellow Masters we haven't seen volatility this low since 2011. That is when price changes were 1.3% between April and the end of December, twice the five-decade average, according to data compiled by Bloomberg. Daily swings reached 4% in December 2008, data using 50-day moving averages compiled by Bloomberg show.
MASTERY Bottom line:
A bottom in the VXX can't be overlooked.
Let's pray it stays at this level for a while but when can you ever count on the market for stability.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- T-Pain Has Spoken on The Habit $HABT | iBankCoin.com
- The U.S. Shale Breakeven Price Debate | Financial Sense
- This Is How Russia Does The (Dry) Ice Bucket Challenge | ZeroHedge
- Everything You Need to Know About The Swiss Gold Referendum | ZeroHedge
- Pity the Sub-Genius | ZeroHedge
- Student Debt By Major: What Not To Study To Avoid A Lifetime Of Debt Slavery | ZeroHedge
- On The Looming Wall Of Chinese Defaults, Restructuring Firm Warns "You Know It's Coming" | ZeroHedge
The most relevant financial news and articles from the Internets
- ECB chief says will ramp up asset purchases 'without... | Business Insider
- Apple Pay Will Work With Square Starting Next Year (AAPL) | Business Insider
- Obama tells Ferguson residents to 'keep protests... | Business Insider
- Wigan chairman Whelan accused of anti-Semitism | Business Insider
- The Best 'Cheap Eats' In Chicago | Business Insider
- Security Was So Tight On The New 'Star Wars' Movie Set That Phone... | Business Insider
- The Derrick Rose Contract Has Become A Nightmare For The Chicago Bulls | Business Insider