Volatility-Trade Idea

On any upside market strength, volatility may be a decent play in to what would be a pullback there, VXX (my preference) or UVXY. Take a look at how the VIX worked out, it also argues for a long volatility play in to any market strength that causes volatility to pullback.

 The price pattern is bearish on the daily VIX, even the descending triangle, yesterday we had our head fake move in the last 1/10th of a second of trade (yellow arrow) which hit new lows going back to 2007, today we have the other side of the head fake move, the breakout to the upside.

Out buy signal with the Bollinger Bands, remember this, I said the VIX was likely to bounce around and loiter for a bit in the volatility squeeze before making a highly directional move, which we already had a buy signal on.

So VXX or UVXY would probably make for a nice play as they pullback in to any market strength.