Just before the close today, the chart looks very bearish. The last 2 candles on the daily chart have formed the Kicker signal. This is normally a very bearish signal. If this was any normal security I would sell my position. But the VXX has a natural price decay built into it and it is supposed to represent the VIX. I believe tomorrow is the last official day of the Santa Claus Rally (the 2nd trading day in Jan). I'm expecting volatility to pick up shortly and my risk is limited to the cost of my option spreads.
So, I'm going to ride this a little longer. I should tell you though, trading a VIX based instrument has almost always not turned out well for me. I should really leave this vehicle to my sim account for a while.
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