For the short term we'll just focus on the trading odds for QLD (X2 QQQ ultra ETF) and VXX (VIX derived proxy ETN).
The current market environment is marked by high volatility, large intraday swings and a tendency to reverse midday. Technical indicators are finding traction difficult.
This VXX study is based on our flagship VIXEN mean reversion model which is based solely on volatility metrics and ignores pricing structure completely.
Our VXX signals can be implemented with actual purchase of the underlying VXX instrument or by employing a variety of option strategies to gain leverage.
The posted metrics are based on purchase/sale of the underlying ETN.
Keep in mind these are daily signals to be executed at the close or in the afterhours trading session (not possible with options).
For Monday the VXX signal is long (bearish for the market) with a 2.2% limit stop.
