Perfect triple top on longterm chart. Absolutely disastrous. From here on out the dips will be bought only for buyers to see an even bigger dip. Dont buy the garbage from the media that the majority if people are bearish. They are not. Look at the vix. Well below its historical average. Investors are bearish on paper but in the real market where it counts they are greed crazed hogs. They are waiting for the last dollar. We all know that he who waits for the last dollar is a fool.
Only thing fraudulent about the VXX is the ignorance some people have about it and how it operates. If they truly understood they would make money with it in either direction. Just never hold it longterm and expect it to go up. Its only a short term hedge to take when volatility is expected.
What we will find in the next 5 year bear market is the following-
The majority of baby boomers retire within next 6 years. They will find their ira's halved, zero interest on cash holdings, home values decline, social security slashed, dollar value fall and gasoline expensive.
Vxx will move to $50 shortly. It will start with several large jums, followed by a long period of backwardation.
The majority of baby boomers retire within next 6 years.
"They will find their ira's halved" Not really, it's at all time highs.
" zero interest on cash holdings" yes, and that means they are keeping the stock market up in search of return, S&P div yield is higher than 10yr T-note.
" home values decline" housing has bottomed
"social security slashed" We are spending MORE THAN EVER on entitlements
"dollar value fall" True but that doesnt make the stock market cheaper!
S&P at 1500 is worth an S&P at 1000 in 1999 ... which means the market is REALLY CHEAPER than 15 years ago. AND companies are buying back stock.
That plus Uncle Ben's pumping will keep STOCKS and gasoline expensive.
By "shortly", what time period? Even during the depths of the Greece crisis, VXX barely tripled. Unless something worse than the bankruptcy of a major bank or country comes along, VXX is destined to remain under 30 forever (or at least until the next reverse split).