UVXY / VXX

This was the quick 1 day trade in UVXY calls closed out Friday on expectations of a move up (however brief) in the market, which would send UVXY down, so I closed that position at a 23% gain Friday.

I see we are getting that SPY breakout I spoke of just a couple of posts ago right now.

Here are the VXX charts which tends to give a little better signals than UVXY...

 It's no coincidence that VXX has a similar triangle to the SPY as there's a pretty good inverse correlation between the two, as mentioned in the last post, we'd expect a short term move down in VXX / UVXY and we are seeing that now.

 The 1 min chart in VXX, like the SPY is also in line.

 Just as the SPY intraday shorter charts like the 2 min have positive divergences suggesting that breakout move higher and possibly in to the gap, VXX shows the mirror opposite, this is why I closed the profitable position Friday.

 However as we move to the 3 min chart we are already seeing some positive activity in VXX, this is in line with expectations from the last post.

 The 5 min is also seeing migration of that positive divergence.

Just as the SPY 15 min is negative, the VXX and UVXY below are both positive.

I would suspect after a brief move down in VXX / UVXY we will see a move up that lasts as long as a market pullback. This move down may be a good opportunity to start a new long position in UVXY or VXX, although I view both as very volatile and speculative. I'd make sure my risk management reflects their nature.