More Pieces of the Puzzle

Last week I showed you the VXX-S&P VIX Short Term Futures which are inversely correlated with the market. The VXX was forming a consolidation pattern after what appeared to be an apparent reversal or start of a reversal (not good for the market bulls). Here's the post from last week... and here's another post on the VXX from last week

The charts for the VXX today....

Here's the daily chart which is breaking out of the triangle consolidation today on very high green volume recently.

For perspective (remember this does the opposite of the market) here's the 5 day chart, note the wedging in the price pattern and the curl up recently. Most importantly, look at that volume. This is why I'm saying-deleverage on your long positions, especially those that are market longs in market averages. Raise cash for a transition and to be able to catch opportunities as they will present themselves very quickly on a breakdown in the market and get some short exposure, it doesn't need to be a full on swing for the fences, but if we get a big breakdown on a big gap one morning, you'll want to have some short positions in place or at least in the process of being put together.

Most importantly, keep your eye on these longer term charts. the market will bounce around up and down from day to day in a top in a way that you won't see very often, emotionally it can be a real roller coaster. However, if you keep your eye on 5 day charts and the longer trend that these charts are portraying, it's a lot less of an emotional roller coaster and the last thing we want, especially now, is emotional decisions.