Tuesday, August 27, 2013

Continuing Interest

This may very well be a fantastic opportunity, especially if the current trend keeps running and retail is bearish on the price action alone.

Take a look at VIX futures, yesterday I was wondering how these would react, would they build a stronger divergence after out quick profit making VIX position, the fact is protection in the form of VIX futures doesn't seem to be under any real demand.

Here's what they look like now.
 VIX futures are up, however 3C is not confirming so it looks like the start of distribution of VIX futures, remember the VIX moves opposite of the broad market.

What I'd like to see...
I'd like to see price move somewhat laterally (sideways) while 3C moves to larger positive divergences and through longer timeframes, this would allow us great entries, low risk and likely be the only ones on the right side of the trade with smart money as retail is fickle and likely very bearish which could force a short squeeze.

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