Friday, July 19, 2013

How about VXX on the close?

Just before 3:30 I posted I was adding to the VXX Calls . Considering what we know and what I've seen in the market today and that VXX trades opposite the SPX "MOST" of the time, it would be a seemingly odd place to add VXX if you think there's a little more upside on Monday like XLF breaking above its range, FAZ below its, etc.

In the post I even said,

"This is a lot of gut feeling on the timing, the long term, high probabilities are there, the timing is just something strong in my gut.

Now look aT VXX ON THE CLOSE...
VXX is green, the SPX is red. Green arrows are the normal inverse/opposite correlation between the two, in the white box, the VXX pops at the close WITH the SPX.

That is unusual.

We have from time to time seen assets like these break correlations, especially if traders are reaching for protection even as there's a series of head fake moves Monday.

I'm going to post mostly trade ideas and what I saw, because everything I thought about the market from my very first post today, came true and almost to the minute.

Therefore there's not much need for market analysis, it's all in the position entries now.


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