Liquidity Holding NQ's VIX (VXN) Down 7/23/2020

As I mentioned in my VIX post, liquidity is high. There is so much available cash now that it's drowning volatility runs. It sucks because volatility provides opportunities. Fear provides discounts on stocks and ETFs. Chaos in the market brings more opportunities.

Judging by the price action, the VXN is about to test support again. Volatility will most likely be delayed until next week. Due to this liquidity and drowning of the VIX/VXN, a breakout is more likely to happen this week.

If the VIX and VXN do not bounce in the next week or two, then volatility will be gone for a while. That would be a trader's nightmare - no volatility.