UVXY the VIXX following ETF Short
UVXY the fear and volatility ETF ran up nearly 10% on the past trading day before
retracing a bit all due to the quick about-face in the market at about 1PM New York time.
It moved from the lows at the opening bell and let up with after hours profit taking.
The relative volatility indicator shows the volatility pump and then dump.
The dual signal RSI indicator shows the low time frame in blue dropping faster
than the higher time frame in black. I see this as a good setup for a short trade
that could yield half of the run-up over the next two trading days or 5% by
next Tuesday, August 1. The stop loss set at the top wicking at 17.25 while the target
the pivot low from which price began at 15.55. I have contemplated a put option
on this but have not yet reviewed the options chain. Price action down may begin
slow until price crosses under the POC line of the volume profile and then accelerate
as price drops below the high volume area into relative volume voids.
retracing a bit all due to the quick about-face in the market at about 1PM New York time.
It moved from the lows at the opening bell and let up with after hours profit taking.
The relative volatility indicator shows the volatility pump and then dump.
The dual signal RSI indicator shows the low time frame in blue dropping faster
than the higher time frame in black. I see this as a good setup for a short trade
that could yield half of the run-up over the next two trading days or 5% by
next Tuesday, August 1. The stop loss set at the top wicking at 17.25 while the target
the pivot low from which price began at 15.55. I have contemplated a put option
on this but have not yet reviewed the options chain. Price action down may begin
slow until price crosses under the POC line of the volume profile and then accelerate
as price drops below the high volume area into relative volume voids.
Trade active:
Put option initially did well but price now stuck in lower part of high volume area
near the POC as I anticipated. Overall, short trade has done well and will take off
half of it at 2PM with remainder to run.
near the POC as I anticipated. Overall, short trade has done well and will take off
half of it at 2PM with remainder to run.
Comment:
Its another half a year later UVXY still has great intraday volatility to trade off
