Expecting a move down in the market early this week/today, I entered 1 position which is VXX Calls, I decided to leave it at that and try to trade the bigger picture.
For those who may be interested, I prefer UVXY long (2x leveraged VIX short term futures) over the calls right now, I considered adding, but that would have too much correlation in one area, however I thought I'd show you what VXX/UVXY are looking like this morning as they trade opposite the market's direction.
VXX 2 min continues to add to the positive divegrence this morning and has a nice rounding reversal process (in price) in place.
The 5 min chart is leading positive, but what surprised me a bit is the next chart.
10 min charts in both VXX and UVXY are leading positive in a big way, that's a strong signal and it looks like the two will be heading up which fits with our short term market outlook considering they move opposite the market.
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