• Ocean Man
    Bought KMP at 75.12. How is VXX down 4% on a red day?!
    6/18/12
    Reply (11)
    • jdub2788: Because that is how much sense this market makes.
      6/18/12
    • blablah: Not gonna be red for long..fear trade is gone until fed fails to announce twist extension or QE3
      6/18/12
    • Perkins Cove: VIX @20.49, down 3%....no fear.
      6/18/12
    • OneLongTrade: Because VXX isn't correlated with red days, it's correlated with volatility and fear. There was more of it going into this weekend than
      6/18/12
    • OneLongTrade: there is coming out of it. It makes sense that it's down. Not to mention we're nearing flat on the day. Plus there's decay on 2x funds.
      6/18/12
    • Ocean Man: OLT - I can assure you that VXX is very highly correlated with red days. But your reasons for the divergence today are spot on.
      6/18/12
    • 440978: Market may be anticipating an L.T.R.O. like announcement with Spanish and Italian yields spiraling upwards.
      6/18/12
    • OneLongTrade: Well you're right OM, I had a poor choice of words. It is correlated with red days because of its correlation with fear, red = fear. However
      6/19/12
    • OneLongTrade: when the reduction of fear outweighs the negative broader market, we see severe underperformance in the VIX, much like today.
      6/19/12
    • Ocean Man: Yesterday was a good day to buy KMP.
      6/19/12
    • ilonas: on risk on trade days and market optimism, the VXX, a fear index does not do well
      6/19/12
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