Today's bombing in Kabul has had little effect on the market. That could change at any moment. The risk for the market is geopolitical uncertainty and in that event, the most likely market response will be lower. Fast and deep, lower. That would suggest a more bearish positioning than is current in both the Premium and Pro trading services. The most obvious choice for ramping up those positions is to double up, or, at a higher level of risk, and reward, getting Long VXX. It is extremely oversold and as set out a few days ago, ripe for an Intermediate Term Buy Signal. I want to be long VXX going into the weekend, or much sooner, fresh Buy Signal or not. VXX - Buy Signal (or not) OPTIONS Sep 17th $27C (2.00-2.10) Sep 17th $28C (1.77-1.80) Sep 17th $29C(1.58-1.60) Sep 17th $30C (1.44-1.45) The strikes are an either/or choice. The expiration is three weeks, but there is much more leverage available in the Sep 3rd or Sep 10th expirations. I'm fine with the extra time, it means spending a bit more for the calls, but having an extra 2-3 weeks for VXX to breakout. I will be Long VXX via one of these calls by Friday's close of trading, if not a lot sooner.
