Monday, December 9, 2013

VXX / UVXY Long

I'm going to get some more charts of VIX related assets up, but RIGHT NOW, I'd have a VERY hard time not having some long exposure (even if only speculative) as Fear is the fastest market moving emotion.

It's not just about the VIX doing exactly what was expected and the expectations having been laid out days (even a week) before anything remotely close to their fulfillment happened, it's the ongoing positive VXX / UVXY signals and the negative signals in the inverse assets like SVXY.

I was saying earlier a dreadful candle for market bulls today would be a bearish engulfing of Friday's SPX candle, there are numerous other downside reversal candles that all need a gap up, and off the top of y head only one that doesn't, a bearish Harami.

Furthermore, the Dominance of the Price/Volume relationship on Friday was huge and we haven't seen even reasonable dominance in any one of the 4 possibilities in a week or so, but Friday something like 70% dominance in almost every average and complete dominance in every average and that being the most bearish relationship of Price Up / Volume Down, for those of you who have been following this rare metric over the years, you know the next day close is typically down after a P/V dominance like that, it's like a 1-day overbought signal. Taken altogether, I'd have a very hard time not having some exposure, even though I'm more skeptical of these assets than ever. However, I'm not looking for a month long trend, but I think the way these can move and the way we are set up, they are a very intriguing asset.

Charts coming.


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