QQQ SPY and the indices all had late afternoon Bearish Engulfing Candles Tuesday afternoon before the Fed Minutes release
I have charted the VIX as a ratio with SPY. IA down trend is persistent.
The ratio is at the lowest seen. However, RSI divergence with a slight increase in relative strength as well as a dropping score on the Choppiness indicator both point to a reversal.
I will play this with call options on the UVXY ETF expiring on September 19th hoping to 2X the trade with little given that the macros will hold up or raise UVXY as a bear market rally may stagnate or burn out.
What is your option?
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The option is up 12% since overnight in the early going with the federal minutes out this afternoon.
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The call option ($9 for 9/26) is up 38% since late yesterday. Looking for more as fear drives UVXY higher.
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Another great day for USVY- the fear gauge is measuring the market pessimism!
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I am taking another third of my calls off the table as there is RSI bearish divergence and a MACD flip on the short time frame chart. If tomorrow is another good day maybe I will reload.
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Accumulating more UVXY on the price drop awaiting the reversal of SPY /QQQ uptick] after the Powell speaks tomorrow
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Nice 8% pop this morning on the stock much much higher on the call options !
Closed position- switching to put options expiring next Friday. plan to close them out on Tuesday 8/30 RINSE AND REPEAT. TGIF !!
The_Bitcoin_Boy
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lowest seen? It's literally lower earlier in your own chart..
AwesomeAvani
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@kwood0319, I am not sure what you are watching. I am only watching the ratio which is relative strength while you might be watching UVXY or VIX only. Happy trading !
AwesomeAvani
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@kwood0319, Another great day for UVXY and my call options !!!
The_Bitcoin_Boy
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@AwesomeAvani, Agreed. I bought at 8.91, and am greedily holding for now.
AwesomeAvani
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@kwood0319, I am glad you turned yourself around. I am up 160% on my options since last Thursday. I am peeling them off a bit at a time as I have 7 remaining. As you may be aware some of the tricks with trading is getting a good price. I am more focused today on my AAPL puts taken on the basis of that idea, Fear is the driver for UVXY; when there is blood in the street.... ( you know the rest). with either an analysis or a hunch, beat the crowd and banking the due diligence and patience.
AwesomeAvani
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@kwood0319, See also my idea update due to the chart pattern this late afternoon.
AwesomeAvani
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@kwood0319, BTW, just be aware UVXY topped out the price action today. The bearish divergence on the RSI predicts a pullback. I am out of the call options now. The S & P / NASQDAC dropped bad today and will take probably three days to recover 50%. I am shorting UVXY and buying TQQQ for the mid-week action and looking to another red day on Friday to liquidate for the weekend. Not advise, not a recommendation, maybe suggestions.
The_Bitcoin_Boy
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@AwesomeAvani, short term you may be right, but I think the market is going lower, so will hold my UVXY for a better gain than 15% for now.
on Tuesday 8/30 RINSE AND REPEAT. TGIF !!