Got out of VXX today at $28.03 for an 11.86% loss. Ouch.
The activity in the VIX over the past two days is rare. VIX declined more than 17% two days in a row. This hasn’t happened before. It’s only the third time registering a greater than 30% drop over 2 days.
If we look at VXO (the old methodology VIX), we see it declining more than 19% two days in a row. That has also never happened before. It’s decline of 42% these past two days was only topped once in October, 1987 (shortly after black monday).
Here’s hoping the next trade doesn’t turn out quite so bad.