VXX And SPY: A Frightening Lull In VIX And How To Play It

Jan. 24, 2023 12:30 PM ETSPDR S&P 500 Trust ETF (SPY), VXXCOMP.IND, SP50019 Comments
Vera Glebova profile picture
Vera Glebova
692 Followers

Summary

  • The situation looks much worse than it was back at the beginning of 2022, but VIX stays in the same place.
  • S&P 500 Index looks overvalued at this point since there are lots of short-term risks.
  • The Fed's dovishness thesis is not yet something we can count on.
  • VXX doesn't provide any special opportunity, shorting SPY is a safer option.

Волатильность впереди - Дорожный предупреждающий знак

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Main thesis

The S&P 500 Index (SP500) is down 14.4%, NASDAQ Composite (COMP.IND) is down 25.9%, and the interest rate is up from 0% to 4.5% YoY. At the beginning of 2022, there was no panic over inflation, no

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S&P500 - нисходящий тренд остается в силе. для CURRENCYCOM:US500 от korotkevichdm — TradingView

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S&P 500 quarterly earnings chart

CNBC

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This article was written by

Vera Glebova profile picture
692 Followers
Individual investor with two-year experience. Current student, studying economics and finance. Exploring opportunities to invest in this tough market.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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