We are Long VXX calls based upon an Intermediate Term Stochastic Buy Signal and a channel breakout (see chart from yesterday). Today VXX is spiking up above its 10 day, 50 day and 200 day moving averages: Our VXX calls (Sep 18th $26-$28-$30) are a highly leveraged hedge against other Long positions. If this correction, especially in the Nasdaq, is the beginning of another "September-October massacre," we will be adding puts as the models flip short in the days ahead.
