Volatility (Intraday) - VXX

A quick recap- yesterday based on the charts I made an assumption of what would happen with the ECB meeting and rates, unless you are trading on something like "Intrade" and trying to make money on what the ECB actually did, it's irrelevant. What was relevant was what I saw on the charts and what it meant to me essentially summed up as, in the very close term as this volatility continues, we get a move to the upside, credit and the positive divergence there was one of the big clues as far as that goes, but the expectation of trend 2 continues, everything in the market that is happening is on course or typical of a reversal to trend 2, the increased volatility, the hyper-negative divergence between credit and the SPX, the 3C charts, Leading indicators, the probabilities in the carry trade, the VIX Bollinger Band volatility squeeze, the trend coming undone as published on the 5 hour chart of ES, etc.

So I'm still thinking at least some upside is likely and I still want to short in to that. I still want to use what the market is giving to try to make money, right now it's giving increased volatility, a larger ATR (average true range) and a choppy market with good signals, so the short term leveraged trades are the vehicle/trade of choice to take advantage of that while building a longer term position or filling in out.

The short term VIX futures like VXX and the leveraged version, UVXY are giving the same signals and they are in line with the QQQ calls as well as the longer term short positions.

 VXX short term intraday 1 min chart which has a leading negative divergence suggesting the VIX/VXX/UVXY move down at least intraday, which is what you should expect if you think the market is going up from the lows today.

 The 2 min chart is negative also, so there's more than just a consolidation.


 At 3 mins, still a short term intraday chart, there's confirmation, this is where the pivot is, so this tells me that the move to the upside is short lived, I thought that to start with otherwise I'd have considered longer expiration calls.

From 5 min on we grow consecutively more positive.

The longer term, big picture as in the completion of trend 2 (or somewhat close to it, enough to give you an idea of how bad it will be) is very negative for the market as the VIX and these related short term futures ETFs trade the opposite of the market.

We're still on track, both short term like the QQQ calls and looking to short strength in price as there's no underlying 3C strength on the charts.