UVXY / VXX Follow Up

As I said in the "Getting Ready to Close the UVXY Trading Position" post, I had no real 3C reason (negative divergence) to close the trading position, but what I did have was one of our concepts regarding market behavior, that's the parabolic move which is one of the strongest changes in price character and changes in character lead to changes in trends. Since closing the position, I've started seeing 3C evidence develop so this is a case in which the concept was working better and even before 3C, and this is why we follow these concepts which mostly have come from 3C lessons on market behavior.

Here's the P/L. I broke this up in to 2 positions hoping I'd get a better exit, but the same...

The P/L on the two fills came to +13.57%

 To me, this VXX / UVXY 60 min chart is too parabolic to me, these moves typically reverse to the downside just as fast or faster, although I still love VXX andUVXY long, I just rather take the gains here and re-enter them at more favorable areas.

Here's a closer look at the same chart, note the start of a reversal with the last candle being a large negative downstroke candlestick.

As I said, the 3C charts gave me no reason at the time, this 30 min leading positive and confirmation tells me that I want to re-enter VXX / UVXY long on a pullback which would fit (and confirms our theory) a market bounce. The market's long term charts are weak, the same charts in VIX futures are strong, so you can see how I want to use any price movement to set up my new positions.

 Even the 5 min chart gave me no reason to close it, except the parabolic move?

Even the 2 min chart was and still is in line!

However since that first post, the 1 min chart is starting to go negative and I suspect it will migrate to longer term timeframes, so I probably got one of the best exits I could.

We'll be back.