Another VXX Daily Stochastic Buy Signal is pending. As the chart below illustrates, the VXX stochastic is similarly situated as it was on Feb 21st, just prior to VXX running from $14.04 to $78.84, providing over a 3000% return on the March 20th $15C. Since the market is closed tomorrow there is a chance that this trade will not trigger until next Monday. The news being what it is, Monday is a wild card for a gap, up or down. In light of the ramifications of a gap-down as set out in Wednesday's update (All In On The Short Side?), there is reason to take at least a partial position in VXX calls before today's close. This VXX Buy WILL eventually trigger, we just don't know when, so we are going out to May on these calls. --------------------------------------------------------------- VXX Stochastic Buy Pending Option: May 15th $50C (around $3.50) or $55C (around $2.50) --------------------------------------------------------------- Note: This trade is Pending for the Intermediate Term, but is one of the rare instances when I am willing to jump the gun, i.e., risk:reward profile is so heavily weighted on the reward side.
