Follow Up to Trade Alert - (VXX)
As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.
Further Update to: Trade Alert -(VXX)
Buy the iPath S&P 500 VIX Short Term Futures ETN (VXX) at? $43.97 or best
Opening Trade
3-26-2014
Portfolio weighting: 10%
Number of Contracts = 227 shares
The number of short term indicators that I am seeing roll over and die is nothing less than astounding. At the very least, I think we are in for the kind of 5%-7% correction of the sort that we saw in January and February.
The big tell here is the strength of the bond market (TLT), which just broke out to a new seven-month high. Stocks and bonds rarely go up in unison, and bonds usually end up being right.
Another is the elevating bottom in the volatility Index (VIX). During November and December, the (VIX) put in rock solid bottoms at the $12 level. After the January dump, the support rose to $14. This means that investors are now more nervous, willing to pay a premium for downside protection, and intend to unload shares at the first sign of trouble.
The only question is whether they can hold the market up until Friday, March 28, the month end on Monday, March 31, or the new start to the quarter on Tuesday, April 1.
The set up here for the iPath S&P 500 VIX Short Term Futures ETN (VXX) is a no brainer. If we get the modest weakness that we saw in early March, the (VXX) should rise 10% from current levels to the $48 handle. If we get a January replay, that is worth 20% for the (VXX), potentially boosting it to $55. If we finally get the long overdue 10% correction, the (VXX) should rocket by 30% or more.
If the selloff decides to wait a few more days or weeks you can afford to be patient. Since this is an ETN, and not an option play, a flat lining or rising market isn?t going to cost you much money. The February low in the (VXX) at $42.25 looks pretty safe to me in a rising volatility environment. A revisit would only cost us pennies.
Take your pick, but all paths seam to lead skyward for the (VXX), sooner or later.
Note: This is not an option trade. It is an exchange traded note. Therefore, you buy the shares like any other stock or ETF.
Here are the specific trades you need to execute this position:
Buy 227 shares at ??????????????.$43.97
Net Cost:????????????....?..?......$9,981.19
(227 shares X $43.97) = $9,981.19
