Recent spikes in volatility have been brief. Volatility usually jumps as the markets drop. The S&P 500’s November and December short-lived short-term lows caused two spikes in volatility that lasted no more than a week each.
The current spike in VXX coincides with a much larger drop in the S&P 500. However, VXX’s high does not seem that impressive considering how far the S&P has pulled back.
So I suspect this current spike will also be short-lived, which means I think the index will quickly rebound, perhaps as soon as today.
While some Seasonal Forecaster portfolio positions have recently hit trailing-stops due to the market pullback, this morning I will be closing yet another successful VXX trade (unless the markets open sharply down, in which case I’ll keep the position open). But as of Friday’s close, this is another 2-week volatility trade that will return around 30%.
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, please click on the following link: www.markettamer.com/seasonal
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