Chart of the week is SVXY:
<-- SVXY is an ETF that is inverse of the VIX commonly called the volatility index. Inverse means that when VIX goes down SVXY is planned to go up (various conditions in the market could cause this to not actually happen = RISK). Today I am seeing the potential for an aggressive long position in SVXY above $84.50. A more conservative entry would be above $90 (a prior high). The stop would be below prior lows at $77. A super conservative target would be just shy of the prior high at $94. A more aggressive but still conservative target would be at $98 and an aggressive upside target would be $103. Since March of 2020 every time we have seen SVXY pullback 15-20% in the following 30-60 days we have see SVXY make a return near the prior high (that super conservative target) and many times follow through with an extension higher. This pattern has occurred 14 times since March of 2020, and I think it is high probability to work again.
Comment:
Super conservative target hit. I closed my trade.