Friday, October 11, 2013

Adding to VXX November Calls

It's not the price move just a second ago, in fact I'd rather that didn't happen yet and I still think there's a chance that VXX breaks the intraday lows before really taking off, it was the inverse of VXX, XIV that made up my mind.

The leading negative divergence here serves as confirmation.

Nothing has changed about the short term duration of the position in my view.

If I were on the fence and had time to watch the asset, I might make a VXX move below the intraday lows (somewhere around $14.25 or lower) the trigger that causes me to enter as it gives a better entry point and reduces risk as well. 

I'll set an alert for that price level and if it happens, I'll update the 3C charts for you so you can see whether there's stronger accumulation , which is what I'd expect, or not.

Remember, because this is a position that I view as likely to be very short term in duration, I think it should be treated as a speculative position. My position sizing will reflect "Speculative" position.

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