Think about this for a minute, we saw the signs of this move coming last week, we were essentially set up by thursday with some tweaking here and there, we knew to watch VXX / UVXY VIX futures as the signal and here we go, take a look at VXX / UVXY, did they not call the move?
VXX intraday as a timing signal, some last minute trades (PCLN) were made before things went north.
There's so much dispersion in the market averages, these are truly ugly charts, not good for market bulls in the long run meaning after this bounce, we had no other really good alternatives than to look at VXX because we know that it screams "Buy", when the market is ready to crumble, and it wasn't ready to do that.
This has NOT been an easy market to navigate, it has taken a lot of trust in indicators that call out trades that are often very emotionally difficult to take.
2 min VXX, that's straight lone deterioration.
3 min, the same.
This looks like a frenzy, it looks like traders are willing to let go of protection to move that money to "The Reach for Yield".
VXX 10 min gives us some better perspective outside of the short term frenzy.
And the 60 min chart tells us where the last laugh will ultimately be had.
Congrats for those of you who have endured a pretty rough market, but we knew it was going to be crazy this week.
Lets hope this move is worthwhile.
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