Wednesday, April 10, 2013

VXX / UVXY /XIV Volatility Charts

There are quite a few here so I won't be commenting on everyone, but there's good confirmation between all 3 assets (VXX and UVXY trade together similar to the VIX and as the short term VIX futures-UVXY is the leveraged version of VXX. XIV is the exact opposite or inverse so it should have  opposite signals to confirm). I will make a few comments.

 VXX Green vs SPY in white on an intraday chart, notice how VXX doesn't make new lows with the SPX new highs, this is either the reversal of manipulation to send the market higher or more than likely the VIX futures catching a bid meaning traders are sensing fear and looking for protection.

 Here's a slightly longer version, again VXX has a floor as the SPY made higher highs today, this is very unusual for recent VXX behavior, changes in character precede changes in trend.

 VXX intraday 1 min with building accumulation and a floor on price action, although the normal correlation even not manipulated would see VXX head lower.

 VXX 2 m leading positive

 VXX 15 m, I showed last night and several times in the past that the place a divergence first shows up is often surpassed on the reversal

 Long term VXX 2 hr. says something about the long term market as well, note the steady and 3C CONFIRMED downtrend and then a strong positive divergence with it starting around the $41 area.

 UVXY (2x leveraged version of VXX VIX short term VIX futures) intraday with a negative right at the very top and a leading positive now

 UVXY 5 min

 UVXY 2 hour-the same trend as VXX with the psotive divergence long term tarting around $21-ish

 XIV is the exact opposite of VXX/UVXY and VIX futures, the 2 min chart shows confirmation with VXX and UVXY as it is now leading negative, but was positive at the bottom in a big way.

 3 min also showing a head fake move above the range in yellow, this looks at first to be a new breakout, but fails as a head fake with 3C showing distribution during it, XIV shortly reverse to the downside. A strong positive divergence late last week and a leading negative now.

 XIV 5 min

 XIV 15 min

And the 2 hour long term trend confirms VXX and UVXY's long term trend


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