No one ever can predict the next bull or bear market. One ting i can say is we are getting closer and closer to a bear market. We have been in a bull market for 5 years and they usually turn right around this time frame. Europe's broke. Usa is broke. Credit cards are maxed out and we are having a hard time just paying the interest. Making minimal payments on credit cards while the principle keeps climbing. The vxx i believe after all it's splits now have 46 million outstanding shares with over 31 million of those being short. One bad event and shorts will be covering as fast as possible. You go on the Spy board and see all the shorts there as well. Longs are bragging there as the shorts are here. Growth sucks around the world. People keep thinking that stocks can't go down anymore and that it's just going to continue North. History says it won't keep going up. Eventually we will see a sharp rise in the VXX. I can see why you would short the VXX but the time has come for a huge reversal. Everyone thought in the housing market that it was never going to come down in prices and see what happened in that bubble. People borrowed more than their houses were worth and spent money on anything they could. Sounds like The U.S governrment. Borrowing 10 times what it can afford. We are maxed out on our credit card and in deep trouble. Kick the can game is about to end
I agre knowmaas, that why all longs VXX, UVXY, TVIX have been buried buying these ETFs ETNs, but you guys continue to buy these every single day. Looks at UVXY volume, it's been around 17-23 million over the past week or so, and these ETF has decline close to 70% YTD alone (we're just 7 weeks into the year)...
Well, like Hillary said, the problem is VXX is not a good vehicle in most corrections. If you think there is going to be a plain vanilla 10% drop in the S&P without panic, you probably should not buy this and instead short SPY or buy puts. There have been instances where S&P sold off 10% in a month and VXX dropped!
Bull market has been 4 years. Cyclical bull in a secular bear. If you are bearish, which i am slightly, I suggest you short SPY. This thing could go to 10 before you get a big pop. That pop may get you back to 20 or 30 if you are lucky. VXX is nearly impossible to time on the long side, but if you must I hope you don't learn a hard lesson about this product.