Maybe I'll add more comments later, but the charts below tell the story. VXX did track closely to VIX until July (see 2nd chart), but has not recently. This implies that if one went long VXX at the March high, and if VIX moves back to equal it's march high, that the VXX will not move as high. So breakeven on the VIX would be a loss in VXX. Perhaps they will re-sync this better in the future, but for now VXX remains unreliable as an instrument to hold overnight.
Note that from April until July 28, the VXX was reliable, it tracked closely to the VIX. But this changed since then.
* ChristopherStockGuy is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. For details, see the post from SATURDAY, AUGUST 15, 2009 titled "Disclaimer".
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