VXX GOES DOWN WITH THE MARKETS? SEC SHOULD INVESTIGATE!!!
This seems as the general markets decline - so does the VXX (Etf). This seems as if the management fees of these etfs are coming out rapidly, too rapidly, deteriorating the etf. The SEC or some anti-corruption agency should look into this. The VXX has no stocks to gauge or measure against - it is just a measure of sentiment; hence, this etf, especially, is being raped.
I have gone so far as to manually compute the VXX on a daily basis (full summation formulat) and could hit within a penny or two of close - today's move makes sense to me, and it's apparent you don't know how this financial vehicle works.
Volatility does not mean "down" or "up". It means "volatility". Contango is a boat-anchor sized weight and I would never consider going long VXX under contango circumstances. Wait for backwardation before going long, and even that is a rouse. Careful options plays with experienced options investors are all this vehicle offers of interest in my humble opinion.
Unless you have legendary timing skills, never go long here.
Wrong! It tracks the VIX futures perfectly. The reason the futures won't move up much is the huge contango and also Bernanke is waiting in the wings. If you get this over 15.50 somehow someway, dump it all and go short. However 12.50 is more likely than 15.50, just my opinion.
Huh? VXX's price is a defined algorithm based on the from two months' VIX futures. Do you have any basis for thinking that management fees are being assessed at a higher amount than published? Going to a regulator with "I think this ETN should be going up when the market goes down because it goes down when the market goes up" isn't likely to get a whole lot of attention.