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Wednesday, March 21, 2012

VXX - What's Next?

OK, so the market refused to sell and after some brutal rallies to new highs, it's gone sideways for a few days.  But the VXX has been absolutely decimated while the market consolidates.  I had thought it could take a rest after yesterday's dump, yet tanked another 5.43% today.  There's simply zero volatility and therefore no fear in the market.

Is there any end in sight for the VXX downward spiral?  Well, first of all, this is another scam invented by the financial institutions.  It can only go down over time.  Look, it was as high as 480 in 2009 We shouldn't even get ourselves involved with this in the first place.  As far as finding a possible bounce point, I see 17.80.  Was today's low of 18.14 close enough?  Who knows?


If we're really desperate, may be there is some selling in the market under current as per today's money flow, courtesy of The Wall Street Journal:



However, $BPCOMPQ continued its third day of buy signal with no signs of let-up.  Again, with quarter end window dressing around the corner, the bears' odds are really slim.  However, I couldn't do anything with my remaining 2/3 of inverse ETF's today; they remained trapped.

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