UVXY

I'll get to the market update ASAP, of course a position long UVXY obviously would have market implications, UVXY moves up, the market (typically and I say this because this very strong inverse correlation had an exception yesterday) moves down.

However as I mentioned in the last post about UVXY calls, I said this may be a "Very" short term trade.

 Here;s the VXX (UVXY is the leveraged version of VXX- Short term VIX Futures) in red vs the SPY in green. Note there's typically a nearly perfect inverse (opposite) correlation and for a good reason, if VIX futures are being bid up, it's typically for protection in response to the market moving down.

Interestingly yesterday the correlation didn't hold so well and VXX fell when it should have been rising. Today the correlation is working intraday, BUT, VXX should be in the green today, it's not because of yesterday's activity.

 This is UVXY's 1 min going positive here, you can see clear 3C distribution on the open today.

This is the chart that spurred me to action, the 2 min UVXY which had been in line with price action over the last 3 days seen here, today though it's leading positive in a big way, (even bigger right now)

 An intraday look at the same chart

The 5 min shows where UVXY went leading negative and at the second high, exceptionally leading negative, but now a relative positive. Remember relative divergences are always much weaker than a leading divergence, but this still is important.

 UVXY 10 min showing the 3C divergences at former tops and some accumulation, but what's important now is the leading negative 3C signal at a new leading low. This suggests that the UVXY move up will be short lived, that's in line with market pullback expectations, pullback enough to get the shorts frenzied and entering short, but ultimately the market should squeeze them hard and move to what could even be a new high, but at least a move strong enough to change retail's mind to bullish (they are very fickle).

Just for confirmation, this is the non-leveraged VXX and the 10 min chart, almost exactly the same, the pullback doesn't matter to me as I said yesterday, it's noise, but it's actually helpful in getting shorts to commit, it's this longer term chart that I'm interested in, this is not the ultimate prize, burt as we hitch-hike a ride with the market, it leads right to the ultimate prize.

This is the current 2 mi UVXY chart.

2 min chart at most recent capture.

There's also migration and the 3 min chart is starting to lead positive.

I may also enter a long UVXY equity position as well for the equity tracking portfolio.