etfmsolutions: New VXX signal...10.25.18

Thursday, October 25, 2018

New VXX signal...10.25.18

Total option market weirdness today as both VIX and VXX fell significantly and yet the entire put option chain for mid November declined...no green numbers....so once again the option market makers rake it in at the expense of direction traders.
For Thursday the VIXEN outlook for VXX is positive and so the signal is vested. The after hours markets are following suit as both AMAZON and GOOGLE are red based on poor earnings.
Also below is the daily trend line for VXX and its clear that today's pullback was dead on the resistance line we saw in July.
This doesn't mean the equity markets are poised for further gains as today's action may have been driven by short squeeze action and a more reasonable exhaustion level for the VIX is in the 50's, not the 30's.
Friday will be REALLY interesting if the markets retrace tomorrow

Commentary and Updates

Mosaic Solutions commentary is typically published daily as time permits and market action warrants.
Posts feature Mosaic model updates including delta neutral stops, VIXEN directional trades and PONZO forecasts.

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