Arbitrage Assets, The Only Other Market Driver for Upside

As you saw, the Yen and its effect on the USD/JPY, which is what sent the Nikkei 225 (Like our Dow in terms of size and price) down -4% last night, is falling off.

As I mentioned earlier, it will be up to the arbitrage assets like HYG especially, VXX and maybe TLT to take over and turn the market. Yesterday's signals all showed us a probable bounce, but in the 3-5 min charts, the 1 to 2 min and some 3 min were as I described yesterday, I believe, "A Mess". This is why I thought it would take some time this morning not only to let the risk off sentiment flow out of the market (FEAR), but for the arbitrage positions to set up and get their early 1 and 2 min charts in line.

There has been progress made on that front and II think if you used leverage, you could go long a lot of things for a very short term speculative trade like the SPY for example with SPY Calls or a leveraged long ETF like UPRO.

 HYG 2 min is shaping up and intraday positive.

The HYG 3 min chart was a bigger picture suggesting a bounce was under work yesterday

HYG 1 min is the last chart that really needs to clean up and it is starting, but you can see the mess it was as I said yesterday.

VXX, I still LOVE on the upside, if I had short term calls in the money or not, I'd take them off here, but longer term or equity longs, I would leave them alone and just wait through this.

The 3 min chart is still in line so that will need to weaken

And that weakness that can make it to the 3 min chart has started on the 1 min above.

TLT looks stronger than either of these and less likely to help, but that is not to say it is without short term damage, it does have some 1 min that could spread, I suppose it would be likely to, it just may take longer.

Everything is so correlated, like I said, whether an AAPL Call or SPY long, I don't think it will matter much considering what these trades are, speculative hitch-hiking to a better area to set up shorts, that's the end game and these short term longs are just a means to that end