Day Trades

Keep an eye on the intraday TICK, I think it's about to go negative. There are a number of intraday or day trades you could take here, I'd consider them very speculative, but they'd include and of the averages, SPY, Q's , IWM (DIA is not my favorite) and use either puts or leveraged short ETFs like SPXU, SQQQ or SRTY. The VXX or UVXY long would be another play.

However they are VERY speculative and I want to give you an idea as to why.

This is just the IWM and UVXY so you understand the probabilities vs. risk.

 IWM 1 min initial intraday distribution. That has migrated to the 2 and 3 min charts.

 3 min which was in line on the move up and now starting to lead negative, the probabilities for an intraday decline are pretty good here, but compare it to the risk as you know we are looking for a strong, longer term (days-week+) bounce higher.

 The 5 min chart in an ugly base, but accumulation keeps hitting at the lower end of the range, look at the 5 min chart and how much leading positive it has added just since yesterday around 2 p.m., it's growing very strong as this would be the base that the bounce would launch from.

A cleaner way to look at it is using a 15 min chart, a much stronger divergence and look at the extent of the leading positive divergence again just in the last day.

As for an intraday long day trade in VXX or the 2x leveraged UVXY, the 2 min chart is leading suggesting that will happen which confirms the short term likelihood of a market move lower intraday, I would however look for a head fake move down below the day's lows (yellow arrow) first before a launch or at least if you saw that it would give you a better entry and less risk with higher probabilities as long as 3C confirms which it should.

However looking at the larger picture (remember VXX and UVXY move opposite the market and their signals should be opposite to confirm), the 10 min chart is leading negative and a lot of the damage has been done since yesterday afternoon, the same way a lot of the positive accumulation in the market has come since yesterday afternoon so I think this means we are very, very close and any market pullback has VERY HIGH probabilities of creating even stronger divergences.

***In fact we may be getting a head fake move in the averages right now. I'd want to see VXX/UVXY hit stops first though at a new intraday low to make any such trade worthwhile. I will not be entering any of these, I have too much to watch to be involved in intraday trades.

Be careful if you decide to go with a day trade, but there's likely some quick $ in it.