VXX iPath S&P 500 VIX Short-Term Futures ETN: Volatility

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	David Sachdev
	Washington, DC User since Dec 2009	38
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Volatility

It goes up...and it goes down. We are here on a friday where the market is having a stellar day and a pretty stellar week, and the VIX is down. Perfect time for me to pick up a few October 2010 options at the 20 strike (so 21 will be perfect for me to make some good money). If you've watched the VIX recently, give us a single bad day or two, and I think I'll make my mark.

Just be careful, it's volatile.

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What People Are Saying...

David Sachdev said at 9/20/10 1:26 PM Price action was $16.92 -0.24 (-1.4%)

So I've been wrong here on volatility, but I haven't felt too bad about buying into protection in this market.

So according to the Wall Street Journal - What's Ahead we have:

Monday
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National Association of Home Builders releases its housing market index for Sept.

Tuesday
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Fed Meeting
August Numbers for housing starts
UN meeting

Wednesday
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Senate Budget Committee conducts a hearing on the federal response to the economic crisis

Thursday
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Conference Board August index of leading economic indicators

report on sales from the National Association of Realtors

FCC reallocation of TV airwaves for wireless

Friday
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August durable goods and new home sales numbers.

And we just had quad witching on this past Friday. Would love to see this market continue to go up, but being cautious with stop limits.

Josh Warner-Burke said at 9/20/10 2:02 PM Price action was $16.87 -0.29 (-1.7%)

http://www.aaii.com/sentimentsurvey

Latest sentiment survey has 50.9% bullish, 24% bearish.

David Sachdev said at 9/20/10 2:47 PM Price action was $16.87 -0.29 (-1.7%)

The change from last week is interesting. Of course the closer you get to 100% bullishness, the more people who are bullish have already entered the market....leaving you one way to go, and that is down.

Of course with all the mutual fund money that is sitting on the sidelines that isn't necessarily true. I would put myself at bullish - but cautious at the moment.