VXX: Expecting a potential major move

Jan 20, 2022

History has a tendency to show us patterns which can make trading much simpler if you know what to look for. As I've said before, we finished a wave 5 of 5 from the bottom of 2009 which to me tells me we are about to head into the biggest recession of my lifetime. Now, I don't pretend to be a fortune teller or foresee the future, but I do tend to rely on the past to better predict the future of the markets. So based on all of this, I have found a pattern in VXX that I found interesting. As the chart shows, during the course of the last 5 years, VXX has made some interesting patterns which shows that around the same point in Fib retracements during the most volatile times since 2017, right before those events VXX sat around the same junction just above the 2.618 Fib retracement level. If this pattern were, to say, repeat itself again, you're looking at VXX returning to the point where the first peak of the downward move began or beyond which would place the VXX at $183. Now I'm sure some of you are looking at this and saying I'm crazy and maybe I am, however, I like patterns and fibs and if there are two things that have proven to be true in the markets its patterns and fibs.

Not financial advice

Jan 20, 2022

Note

Another facet of this to take note of is that these 3 moves all happened in February. Will it be true this year as well? Time will tell.