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Friday, July 2, 2010

VXX struggling today. Gap down at open, tested the close and now heading down

I know there are less players in today and the volumes are down. I would expect greater volatility, not less. Maybe the shorts earlier this week did 'sell on rumor and bought on fact' after today's Jobs number. VXX EFT which tracks VIX (CBOE volatility index) is weaker and technically not looking as good as I predicted. I am still long and thinking there is more selling in the next while (have stated my reasons over the past few days). Maybe the traders are expecting a bounce next week after such oversold markets (7 down days).

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