Market Update part 2

OK, as I said, it was a strange and still is a strange market with a couple of assets, mostly in the Carry cross (USD/JPY), but also in the longer term averages, this is partly why I think there's a move on now to convince retail that the bear market is still on and they should be "Shorting the rip", which works to our advantage as a short squeeze on a move higher.

So here are some of the odd signals, some may have changed and if they do I'll put the updated charts as well.

First I closed the VXX puts earlier because the position was too large, the last set of them I closed is because I would rather enter a new position on a pullback than let the profits fall when I can just "wash, rinse , repeat and double the gains".

As far as the SPY calls, those were the experiment, (weekly calls that expire tomorrow), truth be told I should have closed those earlier.

Here's what was initially odd considering we already knew about the intraday negative divergences.

 For the market to fall, it would be highly irregular for the USD/JPY (1 min) not to do the same, but here it had no sign of moving lower so I looked at the individual currency futures...

This is where it gets weird, the Yen futures (1 min) are positive, that would mean the USD/JPY would likely pullback and thus everything confirms with the market. I'd expect to see the $USD either flat or negative on the same timeframe, but...

 I didn't, it too is positive and still positive. In fact both are positive on the 5 min charts too, I suppose it's a matter of relative performance, once out or underperforming the other, but still strange signals.

This is the current USD/JPY 1 min, it suddenly saw a more negative 3C move and that happened fast.

As far as VIX futures, the 1 min chart has a small positive divegrence, but they move opposite the market so a move down intraday would have stolen the profits from the puts opened yesterday so I closed those, however I will likely re-enter them if I can get in at a better price.

What is also strange, but good to see and gives me confidence to enter longs or a new VXX put position in to some intraday weakness is the next set of charts.

 Usually the 15, 30 and 60 min charts don't move a lot intraday, if they do, it's showing an awfully strong underlying movement because the size of the position on an hourly chart is much larger than say a 5 min chart.

Here the SPY 30 min not only went leading positive as we completed the "W" base yesterday, but added to that today, I suspect that any downside in the market will see additional accumulation, although I think this is more a psychological game making retail think that this morning's move up was a fluke and reinforcing the idea that they should short any weakness which helps an upside move as they short in to it until they can't stand it anymore and get squeezed creating a burst of momentum which can bring in longs and change sentiment to bullish from bearish, the entire point of this move.

Look at this 60 min chart, not just today's move which is impressive, but the entire move, that's strong.

The same is true on the QQQ 30 min as well.

This gives me the confidence to buy long on an intraday dip or reestablish the VXX puts, but I'm likely to look more at a VXX short equity position for a longer term trade.

I'm going to look around some more, see if any opportunities are opening up and as always keep an eye on the horizon so nothing sneaks up on us. I'll post the closed positions' P/L next.