I'm going to go ahead and add to the VXX call position for this near term downside move I expect. Part of the reason is the growing size of the divergence and SPXU looks like it's in pretty good shape here.
I'm not going to enter a full size trading position and I'll leave the other trading positions that are long biased as they are, SPXU will act as a hedge and some extra gains.
I may add to SPXU if it makes a little bit of a move lower and I see volume spike up on the move lower suggesting stops were hit.
I do think this move is tradable (downside move in the market), I just rather not put too much in to it as I'd like to focus on the next two larger trends (long and then short).
If I see intraday volume spike up and 3C remains positive, I'll add to the SPXU long position, this is a short term trading position (days at the most I'd think).
The 1 min positive which is negative for the market as SPXU is SPX 3x short.
The 2 min leading positive.
And the minimum for me to enter a position, the 5 min leading positive, plus a nice rounded reversal process that is proportional. We'd usually expect to see a stop run right about now, just before this makes a move to the upside.
This is the 15 min, it's not that impressive, but the fact it's even there makes me want to have at least some hedging ability in the trading portfolio.
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