Market Update

We're still heading in the right direction for set ups and for the market to crack, the SPY is definitely the leader, QQQ and IWM do not look good and this is why I keep coming back to the IWM for hit and run short or Put positions.

As far as what we have now, earlier I thought we'd see lateral movement once the momo stocks were done selling off and that has happened, that's a small intraday reversal process building, at least in the SPY which should float the other two along with it, although relative performance may be much different.

HYG is still getting pounded with distribution, it's days (the last week+) as a market levitation lever are done, smart money is done with it.

Of course the VXX is doing exactly what we thought on Friday the 14th, it's not quite where I want it as far as opening something time sensitive like a call, but overall I'm happy holding UVXY equity long (2x leverage VXX).

 SPY downside confirmation, then revversion to the mean this morning leading to this lateral movement which is indicative of some small accumulation by the price action alone, we can easily see it on 3C, but this isn't anything big, it's a 2 min chart, but a far, far sight better than QQQ and IWM right now.

So this is the bounce that helps us enter shorts , sell, etc, but unless you are going to trade the bounce which is counter probabilities and not something I'm interested in unless things change a whole lot more, I'd just continue to be patient, let the game come to you.

IWM is not looking nearly as good as the SPY this morning.

Q's look even worse, without the SPY, these might not be able to bounce at all, that should tell you where we are in the minor mini cycle which is attached to the end of the Feb rally's top.

HYG continues to see distribution, they are moving out, it's no longer a viable lever so the cycles are getting ready to switch.

VXX 1 min intraday is reflecting minor softness, which it should with the SPY looking the way it does right now, that's fine, that's good and just makes VXX / UVXY all the more attractive on a pullback intraday or so.

This is the purpose of the mini cycle we spotted on the 14th, unlike most cycles set up that are about a head fake in the averages, this has been about nothing but accumulating protection on the cheap, this 5 min chart is the evidence. When I see 1, 2, 3, and other charts beyond 5 min flying like this, that's when I know I can entertain a VXX call or an add to or new position in VXX or UVXY long equity positions for a swing PLUS trade, really PLUS.

So far things are going great, they require a little patience, but that's the name of the game, let them come to you.