Volatility Again

There's a lot I want to get to, but as I was just watching ORCL's after hours on the TOS platform which uses a slightly different version of 3C, it's not as specific to assets, but overall it's a very robust formula, it needs to be since there's only 1 version on T.O.S.

I switched over to VXX and was shocked to see almost an exact replica of what I've been pointing out all day long on the more specific version of 3C on the Worden software. Why this is interesting, because just like I posted yesterday with both the short term market averages and the Volatility ETFs/ETNs, 

"VXX 3 min shows a short term intraday negative divergence. The 10 min chart is very strong suggesting a move to the upside that will be faded as money continues to seemingly take the path of safety or risk off."

The charts of the short term averages and Volatility as well as treasuries were correct in the above statement (so far and are signaling the second half is on track as well) made in several posts yesterday. Therefore the charts continue to be of interest, although I don't know how it's possible to be 4 points away from the SPX nominal new high and not hit it, I mean if we all bought a share of an SPX component, we'd be there, we are talking about +0.0039% !!!

 VXX on the Think or Swim platform showing yesterday's negative divergence, part of the analysis that was looking for VXX lower and the market higher today and a staggeringly strong leading positive divergence today which is reflected in yesterday's comments that the short term move up would be faded due to the strength shown on the 10 min charts.

The catch is a new (even 1 -day movement or intraday reversal) divergence has to start on the shortest chart, the 1 min which above is doing what is expected and very strongly.

 The Worden version also shows yesterday's negative divergence sending volatility lower and stocks higher, I said this as well as "I wouldn't be a buyer, even believing stocks would be higher today-because of the risk) and the intraday leading positive divergence that leans toward the second part of yesterday's statement above, that the short term price move up would be faded. As Volatility moves the opposite of stock prices, this chart shows the initial evidence is in.

 XIV is the opposite of VXX and moves with the market, yesterday it had its positive divergence pointed out yesterday sending it and stocks higher, today it has an even strong leading negative divergence.

On the Worden platform, yesterday's positive is evident as well as the much larger leading negative today, I think we are right on track.