Consider Barclays Bank PLC Exchnage Traded VIX ETN (VXZ) as a short S&P 500 or SPY stock. You could too look at it as a guide for the amount of put buying on the S&P 500. Put purchasing is what the majority of futures traders do when they think a market will drop.
If the total amount of put buying falls off and moves into a downtrend as we have on VXZ, it implies that feeling is turning more optimistic.
Provided you keep up on my real time trading on Twitter, or Facebook, then you are aware that this was precisely how I anticipated a stock market pullback at the end of April and why I bought Barclays Bank PLC Exchnage Traded VIX ETN (VXZ) and made a fast 8% profit in three trading days.
In the short video below, watch as I perform technical analysis on Barclays Bank PLC Exchnage Traded VIX ETN (VXZ) in 3 different time frames: weekly, daily, and hourly. I believe that Barclays Bank PLC Exchnage Traded VIX ETN (VXZ) is in a very weak downtrend which tells us that the bulls have the upper-hand on the S&P 500. There is a solid chance that the S&P 500 could rally next week. However, even while the bulls have the advantage over the bears, I find the safety of cash to be a practical place right now with a probable entry on market strength early next week.
Have a excellent weekend of stock market research and happy father's day to all the Dads out there.
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