The bottom line here is that I have been expecting all week a move lower in VXX and UVXY allowing them to accumulate short term and using that as a timing signal for the market. It is a VERY hard decision to make to close a VXX or UVXY (equity) long as the charts are so strong on significant timeframes and with the referendum this weekend, I imagine traders will reach for protection in to the close which would send VXX / UVXY higher, but I'm following the 3C signals and I need to open up room for dry powder as well as my expectations for the asset.
The signals aren't horrible in either VXX or UVXY, it's more the 5 min VIX Futures themselves that are warning short term while their longer term charts are also outstanding so I'll set price alerts for a pullback in the asset and re-enter long at lower prices which is a better entry and lower risk as well as allowing me to take some gains off the table.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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