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VIX ETF Going for First Three-Day Up Streak Since May


The iPath S&P 500 VIX Short-Term Futures ETN (VXX) was fractionally higher Wednesday morning after a two-day rally on fears the U.S. may launch a military strike on Syria as soon as this week.

If VXX closes Wednesday higher, it would be the exchange traded note’s first three-day up streak since May. [Best ETFs for a September Stock Market Crash]

The absence of prolonged VXX rallies shows that volatility has remained subdued during the summer and that pullbacks have been relatively shallow. [VIX ETFs Up on Market Jitters]

VXX is designed to replicate the performance of VIX futures, not the spot price. This is a key difference because VIX-futures products can lose money on roll trades when the market is in “contango.” [VIX ETF Traders are Gluttons for Punishment]

VXX is down about 48% year to date. The ETN is testing its 50-day moving average.

iPath S&P 500 VIX Short-Term Futures ETN

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.