lowtrade

[lowtrade]

http://seekingalpha.com/article/1986071-vxx-and-vxz-now-5-years-old
Long & strong @ VXZ sucks, compared to the SPY. Tracks inversely, but not well for investors. Swing trading on the other hand;

Was thinking about your play & plan. Suggestion;
If I wanted to short the S&P at a reversal or retrace point. I'd look at an ETF which tracks better, with larger gain returns. My old fav FAZ

So bottom fishing FAZ will preform better, even if you do need to average down on farther decline in an inverse S&P product.

While the VXZ tracks the S&P inversely;
FAZ does it better, with larger price moves;
Compare,
VXZ
http://stockcharts.com/h-sc/ui?s=VXZ&p=D&yr=0&mn=6&dy=0&id=p26397468468
SPX
http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p27073323153
FAZ
http://stockcharts.com/h-sc/ui?s=FAZ&p=D&yr=0&mn=6&dy=0&id=p37280072853

Look at the April 4th SPX retrace, then calculate VXZ vs. FAZ gains at that time. VXZ had 6% and FAZ had 18%. The power of a 3X ETF.

Food for thought.