Similar looking chart pattern in VXX just prior to big spike. Divergence indicator recently went bullish. Not financial advice.
Not a bad day of work, my friends. Congrats to those who stuck it out and caught the breakout! Respect.
VXX is an interesting chart for EW analysis. Sometimes I will invert the VXX chart to analyze wave counts from that perspective. My count has VXX ending a significant 5 WAVE down from the Spring 2020 high - soon and potentially as soon as next week! Probably an early call as WAVE fives can extend out and out and out …sometimes. And I will note that...
Looks like we're at the end of the road, my friends! ABC correction will commence any week now.
Volume today and this past week on VXX has been significantly higher, showing accumulation and bullish divergence. Significantly oversold now I think the issue with options today or not knowing about the reverse split pulled in a ton of shorting which should add a short squeeze catalyst to a rocket fueled takeoff. Biden set the primer with a higher tax increase,...
UVXY looks poised to double in the immediate term to a 10 handle. Let's see if we get a Vix breakout (above 19.70) by the close of trade today. We'll need to see it hold for the previous resistance level (18.80) to act as support going forward...
This is the weekly chart for SPY. As you can see its Overbought on all 3 major indicators. This explains why VIX is increasing. Please be careful as the markets are very volatile right now
Vix is seeing consecutive rejections at the 21 day EMA, which is sitting just below a previous support level turned resistance. If we see a breakout above this level today, we have initial upside to the 50DMA around 20.9.
"One or more traders laid out a roughly $40 million bet that the Cboe Volatility Index - often called Wall Street's fear gauge - will break above the 25 level and rise towards 40 by mid-July," finance.yahoo.com Try to play it with VXX for 1x leverage to the vix and UVXY for 1.5x leverage to the vix. It is a good way to have some volatility protection.
Let's take a look at the Vix with a Heikin Ashi candlestick, and on a log scale. Notice the RSI on the monthly timeframe is 43, after hitting a similar RSI high in March 2020 (80) to that of Nov 2008, when the RSI was around 80 as well. The post November crash RSI low in the Great Recession crash was around 40, and we're at 43 now on the bounce. In 2010, abruptly...
We're seeing a massive landslide of wins across the economic data spectrum this morning, with Retail Sales coming in hot at 9.8% vs the 5.3% expected, Retail Sales ex-auto coming in at 8.4% vs the 4.9% expected, jobless claims coming in at the lowest level since before the pandemic at 576k vs the 695k expected, and finally continuing claims came in at 3.73MM vs...
Idea for UVXY: - Attached is Fundamental Analyses. - We do not expect UVXY to reach $1.00 before the reversal of the greater trend. - Why would Volatility enter an increasing trend? We expect global economic contraction, before stagflation, then finally deflation. GLHF, DPT Disclaimer: We absolutely do not provide financial advice in any shape or form. We do...
There appears to be a pattern forming that cycles and could signal a pop or swell in the vix. With the way the geopolitical landscape has been, I would assume it would be a pop based on a certain piece of news or an event. A swell would be more worrisome for the overall market. There was a great post here and I can't remember who posted it, forgive me, but they...
Simple enough. The market is showing extreme divergence between Futures contracts priced for next month, and Futures contracts priced for Q4. This is the largest divergence seen within this Futures cycle. My theory is that it could be indicative of a bottom in VIX and the market pricing for more serious volatility events later in the year. Key: Bolder,...
there's a slim chance that we go slightly higher. pt: 2941.00 ~ 2686.00 this was a fun run, but it's time we reset some rsi's and start fresh 💸
Anticipate more red next week (sometime around Tue-Thur). Might get a little rallying Friday and Monday.
... for a 1.50 debit/contract. Notes: With VIX at lows, opening a small risk one to make one bullish assumption trade in VXX with a 14.50 break even. I generally don't like to take bullish assumption shots in volatility products, particularly ones like VXX and UVXY that experience contango erosion over time, implying that you're rowing against the tide with any...