Friday, November 22, 2013

Opening VXX December $5 Calls and maybe a UVXY long

Here are the charts quickly...

 VXX 1 min, I commonly draw in the rounding bottom because I don''t like getting involved in any reversal that has not undergone the reversal process.

VXX 5 min is a strong timeframe and like I showed last night, nearly vertical, one of the strongest divergences I have seen (not including the longer timeframes which are stronger), this is a VERY fast, very strong divergence as if (like I said last night) someone knows something that they are buying massive amounts of protection from, so much so it bent price yesterday in an angle which is very unusual.

Even all the way out to 15 min it is doing all this leading in 1 day.

This is the actual VIX Futures 15 min. chart and this was part of the evidence I used earlier in the week to suggest a bounce off Tuesday's accumulation, it was CLEARLY negative, now it is not and looking more and more positive with a rounding process.

I'll let you know if I add UVXY long (equity), but I'd have no problem with it at all.

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