HYG still hasn't fired...

I figure we still have a bit of time, that's why I hate giving time tables, they always are longer than you expect. In any case, the averages, VXX and HYG were all part of what went in to Friday's call for early this week....This is an abbreviated version and this has more charts and more in depth.

The point being the HYG divergence that was run over Thursday formed up again Friday which fit with the VXX and most market averages for a bounce which you might recall I wanted to set up the AAPL trade which you can find here.

The point is, these few charts can tell us a little bit more about where we are in the analysis.

 HYG's 3 min positive and rounding/reversal process, not very large, but this is what we saw forming Friday so it made sense.

There's some deterioration already setting in even though HYG hasn't made good on the positive divegrence yet, I assume it still will, but the fact there's deterioration setting in already just goes to show why the market or rather Index futures are showing relative weakness vs the Carry trade (USD/JPY).

As for AAPL, you might recall the trade set up is looking for a bounce in AAPL, all of the other charts say AAPL is a decent looking short good for 100-125 points I'd estimate.

AAPL hasn't really made that much of a bounce, but it is much stronger than when we put the idea out as we expected it to be, the point of the idea is to get ahead of the trade and let it come to us.

So I think HYG will fire off and AAPL will at the same time, that should set up the AAPL short trade linked above.

This all makes sense as VXX still looks like this...

The 1 min negative we saw on Friday taking shape matured this morning and turned VXX, but it hasn't pulled back much. Note as well that to the right there's improvement in the VXX, it's small like the HYG deterioration as these two trade opposite each other, but 3C is higher than it should be.

I'd still like to see HYG and the averages up a bit and VXX down a bit, that allows VXX to accumulate with stronger divegrences which are already flying, and that really becomes our market pivot/turning point and where a lot of trades make sense like PCLN short (I'd wait a bit on it like AAPL and VXX) and many others.

So it's kind of a waiting game...