See chart. Bears really need to move things down on the indexes or contango will return to rolling volatility plays. See notes on chart. * note: looks like TradingView, in its wisdom, is now resizing indicators from how publishers intended them to be zoomed. Will follow up with another graphic later.
If you know anything about volatility products, you'll know that -- unlike VXX and UVXY, SVXY increases in value as volatility declines (it's an inverse) and suffers from "inverse contango" which ultimately means that, over time, SVXY's value will go to infinity in the absence of backwardation, splits (it's undergone two since inception -- a 2/1 in 2012 and a 2/1...
SVXY pays a price when VIX is high (>16).... even when SPY is increasing (see arrows). This is due to rollover but not to be confused with VXX decay due to contango.
I think that the long term support here will break. If so, short away to the double bottom.
Comparing a few of the technical patterns that occurred before and during the massive corrections of 2000 & 2008, the S&P is showing signs of another large correction looming. (Again after ~ 7-8 years of bull-run). These types of monster moves play out over a period of months / years and therefor it would be diligent to observe these and other indicators over...
As a bread-and-butter, premium selling, index ETF trader (SPY/IWM/DIA/QQQ), low volatility environments are not favorable for my type of trading. My alternatives are to either just sit on my hands and wait for volatility to return or do something else, such as earnings plays or VIX trades. For some reason, I have taken a liking to shorting SVXY as compared to...
Even though svxy is a little bit out of channel , but it is not touching the bottom line of the channel. Compared to other indicators, momentum has a nice beautiful upside divergence, stoch rsi crosses right upon the 20 line, which is a good sign. From the candle chart, one green candle stays at bottom and the right green one gets higher than the left red,which is...