Category Archives: ETFs

Wait For It…….

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All four days this week have been about recovering from last week’s action; I suspect/hope the unraveling can resume on schedule next week. Aligned with that, Japan is setting itself up for a bigger fall than we’ve seen for a while. If DXJ can fight its way back to about $47, I think it will provide the proverbial lay-up shot of a shorting opportunity.

0417-dxj

Emerging Fear

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My largest short heading into the day was EEM. In spite of yet another ridiculous mini-rally this morning, things are once again falling to pieces. As the daily chart shows, the repetition of buying-based-on-unicorn-farts followed by a stall (tinted thrice) and then a plunge-based-on-reality is getting a little predictable.

0415-EEMN

VXX Sux

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I have traded the VXX only once or twice in my entire life, and I know nothing of its nuances. I was surprised, however, to see what I saw today: while the $VIX was up double-digits, the VXX was up something pathetic like 1.8%. I (naively) assumed that VXX and $VIX moved in lockstep. I decided to lay down the two items on top of one another in ProphetCharts, and as you can see, the VXX (in blue) excels in pretty much going down all the time, almost irrespective of the $VIX’s wild moves: (more…)