iPath S&P 500 VIX Short-Term Futures ETN (VXX)

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==> VXX = A Possible BUY on Friday?
By Erin Heim

* February 14, 2017

I was recently asked to review VXX below as a possible BUY on Friday. Here are the basic steps I go through (not necessarily in this order):

1. Trend Model Signals - These signals are determined by the location of the 5/20/50/200-EMAs. At this time, the IT Trend Model is on a Neutral signal (the 20-EMA crossed below the 50-EMA while the 50-EMA was above the 200-EMA). The ST and LT Trend Models are on SELL signals (5-EMA below 20-EMA while 20-EMA is below the 50-EMA and the 50-EMA is below the 200-EMA). Not a good start.

2. Price Momentum Oscillator (PMO) Configuration - VXX just generated a PMO SELL signal. When my viewer asked me about this symbol, the PMO was still on a BUY signal in oversold territory. Okay, let's say it was still on a BUY signal. The Trend Models are on bearish signals.

3. Price pattern and its relationship to PMO/OBV/SCTR - The price pattern is bearish, the OBV is confirming the decline and the SCTR has been without a heartbeat for months.



4. Review the weekly (and possibly the monthly) chart. VXX has been in decline and in what could be considered a basing pattern on the weekly chart. A breakout from this pattern could mean it's ready to begin a new rising trend. But, it hasn't. The PMO is oversold, but it doesn't look at all interested in slowing its descent.



Conclusion for VXX? I wouldn't get near it even with what appeared to be a new PMO BUY signal Friday. Don't compromise or get impatient. One bright spot (PMO BUY signal on Friday) doesn't counteract all of the negative and for VXX it's very negative. . .

http://stockcharts.com/articles/decisionpoint/2017/02/new-chart-spotlight-added-to-decisionpoint-live-webinars.html

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