EOM Trading Tuesday 7.19.16 $VIX Funds

 

Good Evening,

Is the rally beginning to slow-data from Stockcharts.com.
Here is another view.  If we have a reversal, the first level of S-support would be near the previous high.  The other areas are highlighted.  I am not calling for a reversal here-just identifying support if
it happens.
The media has been buzzing about the possibilities of Glass-Steagall being reenacted.  If so, it would not be positive for the mega-banks.  This article helps put this into perspective.  Personally, anything that helps protect the Investor on Main Street gets my vote.
Tonight,  I analyze the performance between the VIX and two Volatility Funds the 1X VXX and 2X TVIX.
Check out the differences in Performance.
A.  VIX 166%    VXX 50.5%   TVIX  98.9%
B.  VIX  112%   VXX  34%     TVIX    67%
C.  VIX  322%   VXX  110%   TVIX  351%
D.  VIX  113%   VXX  53%     TVIX  155%
Notice the discrepancies?
Did TVIX trade 2Xs the VIX-absolutely not.  
Did VXX trade 1:1 with the VIX-absolutely not.
 
Please keep this in mind when you trade these funds.  Does this keep me from trading them? 
 
No, but I don’t buy them and head off for a road trip either.  Emoji
 
You must keep these front and center when trading and fine tuning your entry and exit points are a must.
 
Tomorrow, we begin our study of Europe’s largest banks to see if we can spot which bank is the Canary in the Coal Mine.  Hint, hint. Emoji
Enjoy your evening!
DOE
In full disclosure, as of 7.19.16 I own TVIX in the speculative part of two IRA accounts.
When your Vision and Goals are Clear-Results will Appear!
This information is for Educational purposes only.
It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.

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