Tuesday, August 21, 2012

Volatility

Not only traditional volatility, but the strength in the 3C signals is getting really impressive. Take a look at VXX (Short Term VIX Futures), it seems someone is making a big bet on increased volatility, which means the market goes the other way.

 This is our typical leading positive divergence in VXX on the 2 min chart.

 The area above is highlighted as the 13th, note the huge move in the leading positive divergence now.

 Here's a 3 min positive divergence.

 Here's the same period from above to the left (8th-13th) and look at the leading positive now.

 A typical 5 min positive divergence...

The same 5 min positive to the left (13th) vs today's super leading positive divergence. I might even consider adding some Calls to UVXY if we get a pullback.

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