Yesterday, we pointed out that the iPath S&P 500 VIX Short Term Futures TM ETN (NYSEARCA:VXX) had posted losses in 19 out of the previous 20 trading days. Well, a snap-back was probably inevitable.
And a snap-back rally is exactly what we’re getting today, with the VXX surging 6% in morning trading. All of the major U.S. indices are down, and investors are even selling bonds as well. This action has temporarily injected a bit of fear back into the markets.
For at least today, volatility reigns supreme. Whether this is the start of a sea change in the markets or simply a one-day blip in the relentless march higher in bonds, commodities, and equities remains to be seen.
The VXX has still lost 47% year-to-date, as investors have thus far ignored negative news — perhaps even embracing bad news as good news, because it means more government intervention (and thus is ultimately bullish for equities). The result is a steadily declining level of volatility as measured by options futures contracts — and a steadily declining share price for VXX.
You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
Related posts:
- Dow’s Epic Winning Streak is Over — Now What?
- The “Longest Uninterrupted Smart Money Selling Streak In History” Extends To 16 Weeks
- New Jobless Claims: 55 Weeks Below 300K, Longest Streak Since 1973
- Can The Dow Extend its Historic Winning Streak?
- Gold Miners Arrived At Huge Resistance After An Incredible Rally
Powered by WPeMatico