Wednesday, October 16, 2013

VIX , VXX, UVXY Follow Up

There's been a solid spike in underlying trade across all correlated assets from VIX futures to VXX, UVXY and XIV (which are all different ETFs with different leverage or inversion and different management companies, there should be no confirmation unless something actually happened).

Furthermore, VXX which is effected by manipulation to effect the SPY Arbitrage, looks to be in the clear as it looks like they are either giving up on the SPY Arbitrage or it was only meant to hold the ,market up until  closing trade in which I speculated there may be a rip lower.

 VIX Futures see a sudden spike higher after quiet positive action all day.

VXX has been seeing steady 3C positive divergences intraday

 At 3 min you see the same rip higher at the same area.

The 10 min VXX is in a strong leading positive position, this is why I prefer longer dated options or the use of VXX or UVXY long, UVXY long yesterday had a double digit gain.

The inverse (opposite) of VXX is XIV,  you see the same spike, except here it is the opposite as a leading negative divegrence as it should be.

 The 3 min chart shows it clearly as well.

As to the longer term charts or rather intermediate positives in VXX and UVXY, this 10 min XIV confirms with a leading negative divegrence.

This is HYG which is negative through all intraday timeframes and thus the reason I believe they are letting go of the SPY Arbitrage.

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