Monday, March 10, 2014

VIX Futures and VXX / UVXY

These assets are also key in understanding what the market is up to, when I put these out as an entry (long), I think that's when we have an exact turning point in the market, as of Friday after waiting on the signals to mature all week, I thought we were very close and most likely would see these posted as longs today, WHETHER YOU ARE INTERESTED IN TRADING THEM OR NOT ISN'T THE POINT, THE TIMING IS.

So far we are starting to see the flying leading positives that we pretty much only see in the Fear Index, however short term , like Friday they still tell me, "Not quite yet, but real soon" as in, could happen in the blink of an eye.

 You can tell by the shape this is a large base in VXX /UVXY and a strong leading positive divergence like I was looking for all the way out to a 30 min chart here.

VIX Futures went from a leading 15 min positive early last week to a 15, 30 and 60 min leading positive divegrence by Friday, so these are pretty much there, their "Force readiness" has been put in place and checked and rechecked.

The 5 min divergence is starting that "Flying" move, as I said Friday, early market strength this week /Monday will only make these divergences stronger.

 However for the immediate future, the analysis from Friday still stands which is in line with short term QQQ charts...
The 1 min VIX futures looks just like this 1 min VXX 3C chart, a negative intraday divergence, that means a pullback here confirms the Q's 1-2 min positives and a pop higher there, however as you could see by the averages and the VIX charts, it doesn't have long and won't carry far.

This is still one of the best barometers we have on position timing. Of course some charts/assets are ready before others, but with overall flow of the market determines about 66% of the flow of stocks directionally.

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