In markets, you always hear: Buy Low Sell High. But what is Low.
Here's chart of VXX - Please tell me where is the Low
As you can see in the chart above: VXX used to trade above 800 in 2011 and today it's trading at 30 and still falling. Now tell me where is the Low?
What is VXX?: It is iPath S&P 500 VIX Short-Term Futures ETN. (ETN means exchange-traded note). It's an instrument that trades in US market like a stock. It is designed to track the Volatility Index i.e. CBoE VIX, also known as fear index. The VIX Index is a measure of the implied volatility of S&P 500 Index Option. I know it's little technical. In simple words - it's an index that tracks volatility/anxiety in the market.
You can clearly see how this volatility and anxiety has collapsed in last few years and it's trading at shocking levels right now. This is market for you where one should never fight the trend because you never know how far a trend can go. In market, no low is low enough and no high is high enough.
The blogpost is purely for educational service.