VIX

If there was any kind of liquidity in the VXX options, I'd be taking the Calls (long) trade right now.

You may or may not remember this post, but when things go exactly as you expect, it's a pretty good confirmation.

Here's the VIX right now.

Note the buy signal and the Bollinger Band huge volatility squeeze.

In this post "Volatility" from this Wednesday, Jan. 30th, I showed virtually the exact same chart and below it wrote...

"As the BB's pinch, it makes a good area for a head fake move below the band, but at this time I'm more interested in the highest probability trade which is a move toward trend 2 (down) so any short term strength will be used for tactical purposes."

We aren't below the band, but we are below the average and this is the move I was talking about, it's part of the volatility. Unfortunately I din't see a lot of liquidity in the VXX Feb. options, so I'll have to think on this, but I do like the idea of, "Long volatility here"