Thursday, October 28, 2010

How can you not trade this?

VXX_60 Trend Model


VXX_240 Trend Model


VXX Daily Trend Model


Let me count the ways:

(1) Just trade VXX itself for Long & Short;  
(2) Trade XXV (inverse VXX) for VXX-Shorts;
(3) Trade SPY or QQQQ  inversely for VXX signals, i.e. SPY LONG for VXX SHORT signals.

Forget about "correlation with VIX," just look at the Trend Models.


XXV Daily Trend Model



A