VXX Trading Model

VXX had been an outstanding trend model.  Despite my protestations that this market should come crashing down at any minute, the VXX trend model has been spot on in managing the market's rally.  Below is a chart of VXX with its trend model's signals for the past 10 months:

VXX Daily Trend Model

VXX Daily Trend Model Trading Pro Forma

At its highs in early 2009, VXX traded at 118.  That suggests that if and when the market revists the March, 2009 lows, this $20 stock will rise over five-fold.  There is no way it does that without taking its trend model along for the ride.


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Past performance is not a guarantee of future results.