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.
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