to not short VXX on a spot VIX jump of 25% would be criminal on my behalf especially consdering I didnt have any VXX short in my account.
When I saw VIX at 25% and VXX up 11% I couldnt help myself! up a nice 2% since my move this morning. It could be short lived.
JUst keekp in mind - todays sell off is welcomed by 90% of active fund managers. I call it a 'relef' sell off. The big boys wanted a sell off since most of them missed the low volume rally the past month.
Any postive news now from Europe caould spark a 2-3% pop in SPX.
The amount of money in T-bonds is insane. This money will flow into stocks, just dont know when the T-bond bubble will pop.
Hey philby7777, seems you're knowledgeable on VIX/VXX. What's your read on the sometimes significant divergence between VIX and VXX (and TVIX)? I started to follow these more closely only lately. VXX should track VIX, but as you said, on a 15% pop in VIX, VXX moves only 6% today. Another example: on 7/16, VIX was down and VXX was up. Seems like the relationship is quite erratic, and I can't make sense of it based on what I know.
I like your approach shorting VXX when it lags VIX. Right now I'm long (as of last Friday) as a hedge.