VXX / UVXY Update

Yesterday I closed the VXX short position (September $17 Put),

"This is for a short term move, specifically the one I've been expecting.

Personally if I were short VXX or UVXY I'd probably take profits here, this chop means we need to be more nimble in my view.

I'll let you know when and if I open a long VXX position"

This morning's reaction in VXX...

 VXX gaps down on the open and immediately fades the gap to shoot higher as expected yesterday as VXX September $16 Calls were opened.

This was ALWAYS expected to be a short term trade, in fact I could have taken a +30% profit right on the open for a few hours of market exposure, I almost wish I had, but I'll give it a little more space for now.

Yesterday's VXX 1 min chart leading positive and the gap down this morning leading positive, in other words the gap down this a.m. was accumulated.

This is EXACTLY what 3C signals were saying at the EOD yesterday before the close.

UVXY, the 2x leveraged version of VXX also showing a 2 min, fairly small divergence, but still large enough to send us higher. Remember the VIX futures move opposite the market so higher VXX means lower SPX.

Interestingly the real VIX futures were leading positive yesterday, one of the reasons I chose options as the duration of the trade limits the profit potential without using leverage.

The gap this a.m. was accumulated as you can see and we are in line or better for now.