Massive VXX implosion is possible today

Discussion in 'Trading' started by shortie, Aug 11, 2011.



  1. Ur gonna have to looked up how the VIX is calculated to answer your question.


    This is how the VIX behaves:


    Market goes down, VIX goes up.

    Market goes up, VIX goes down.


    Market spikes down, VIX spikes up.

    Market spikes up, VIX spikes down.
     
    #21     Aug 11, 2011
  2. Nine_Ender

    Nine_Ender

    VIX/VXX apparently are useless to me. So I learned something today.
     
    #22     Aug 11, 2011



  3. Have seen bottoms/temporary bottoms formed when VIX was around 40-50.

    I believe VIX once reached 80 at some point in the 2008-09 sell off.

    It doesn't seem to be reliable at picking tops however. Maybe b/c it measures fear and not greed.

    The VIX bottoms out around 15 and stays around there no matter how long the market goes up. The market could go up for 3 months but the VIX stays around 15.

    Haven't seen it go to 10 or below. I think 14 was the lowest I have ever seen it go to.

    So, you could sell or sell short when the VIX reaches 15 but the market could continue to go up higher and higher....
     
    #23     Aug 11, 2011
  4. Lagging indicator.
     
    #24     Aug 11, 2011
  5. A much more reliable signal imo.
     
    #25     Aug 11, 2011
  6. S2007S

    S2007S



    I think the VIX could spike once again, I think the SPX will make a bottom under 1100, I still think sub 1000 on the SPX is a really possibility.

    Short the VIX above 50 go long below 18!

    Waiting patiently for TVIX to drop back below $25 before getting long.
     
    #26     Aug 11, 2011
  7. #27     Aug 11, 2011
  8. Is there an ETF for $VNX?
     
    #28     Aug 11, 2011
  9. Can anyone explain why VXX is up 1% while $VIX is down 5.6%? I know it doesn't track exactly but this is a big difference.
     
    #29     Aug 12, 2011
  10. don't have the future quotes in front of me but guessing VIX is still in backwardation.
     
    #30     Aug 12, 2011