Wednesday, July 17, 2013

VXX / UVXY (Short Term VIX Futures) and XIV (VXX inverse)

So the volatility ETFs, VXX and UVXY (which typically move opposite the market-I only say typically because the relative performance can be vastly different) were showing good signals on the short intraday charts from yesterday's bounce accumulation), it was the 5 min charts that were stuck, VXX/UVXY were not seeing accumulation as they should, XIV was not seeing distribution.

The longer term trend represented on longer charts like 15 min (plus) show the longer term position has already been put together.

The charts.
 UVXY 1 min looks great today.

A zoom in look shows a small range with an even larger leading positive divegrence, I love these flat ranges, they are so productive.

VXX 2 min also with a big leading positive move.

 Here's a 3 min of XIV starting to get really igly (trades opposite of VXX and UVXY and with the market), there was no way this kind of negative could stay on the 3 min without seeing this on the next timeframe, it's too strong.

VXX 5 min starts leading very positive very quickly.

 XIV starts leading very negative very fast -5 min

The longer term trend or the core of the position is already in place, the short term charts are like the primer to get it moving.

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