Domistock Tools Used:
Assets charted: S&P 500 VIX
Election speculation is pushing equities volatility up and DomiStock has captured this trend providing a 5-day up bet on VXX that has already returned over 14%. The up signal was initiated just after DomiStock called VXX deflated, back on the 24th and the 25th of October.
According to the DomiStock Signal Performance Indicator, the 14.25% return is the highest of a 5-day signal for the last 30 periods. That has a double interpretation. From the one hand it shows how strong the rise of volatility and hence of investors anxiety has been so far and on the other hand it points to a potential overreaction. DomiStock places the next resistance at 36.64 which actually is Tuesday’s high. This means that the VXX would have to clear this resistance before rising higher.