VXX Follow Up

Yesterday I mentioned VXX as a candidate for a swing trade (short) and preferably using options (but not holding until expiration) in this post.

As you probably know by now, the VXX trades inversely to the market. Here are some late day charts of interest.

 Here we have a 1 min positive divergence in the VXX, I used to describe this 1 min timeframe as the playground of Specialists and Market Makers, until HFT firms have made them nearly obsolete. Still the short term signals here can often tell us something about the next day's open. Looking at this chart, I would think we may see a gap down and if you are interested in the trade as described n the link above, it may be a good entry point.

 The 15 min chart, which is more in tune with smart money is in a leading negative position and this is one reason I like the swing short on VXX.

The hourly chart is more important then any of the harts above and it is clearly negative. So keep VXX on your radar, it might just be a great trade and you might just get a low risk/high probability trade out of it.