Interactive Brokers' Sosnick Says Bullish Consensus Hasn’t Been Broken Yet

The video discusses the recent spike in market volatility, focusing on the VIX and S&P 500 trends. It highlights the unusual rise in the VIX alongside a bull market in January, and analyzes the S&P 500's position relative to its moving averages. The discussion covers market reactions to sell-offs, the use of leverage, and the discomfort caused by shorting volatility. It concludes with a look at VXX trading strategies, emphasizing the risks and protective measures for those shorting VXX.

What unusual market condition was observed with the VIX during the stock market rise?

• The VIX was unaffected by the stock market rise.

• The VIX was rising as the stock market rose.

• The VIX remained stable while the stock market rose.

• The VIX was decreasing as the stock market rose.

How do investors typically react to market sell-offs compared to market rises?

• They react more calmly to sell-offs than rises.

• They react more dramatically to sell-offs than rises.

• They react the same to both sell-offs and rises.

• They ignore sell-offs and focus on rises.

What is a common strategy used by investors that can lead to discomfort during market volatility?

• Buying gold as a safe haven

• Using leverage to increase stock positions

• Investing in real estate

• Investing in stable bonds

What is the VXX in the context of trading strategies?

• A cryptocurrency

• The volatility of volatility

• A type of government bond

• A measure of stock market performance

What protective measure is suggested for those shorting VXX?

• Buying out-of-the-money calls

• Investing in mutual funds

• Buying in-the-money calls

• Selling all stock positions