There really isn't much of a change here and the charts are confirming what I showed you in the last post, except I'm only dealing with the "pullback" scenario with this update.
As mentioned earlier in the week and yesterday, we use to trade 5 min Futures signals, we did with a couple of options recently and I still would as far as the short term trend.
The 5 min chart has been deteriorating suggesting a pullback, it may have already come if not for the op-ex max pain pin that is in place on an options expiration day.
NQ/NASDAQ 100 futures on a 5 min chart show the same confirmatory signal as ES.
And TF does as well (Russell 2000 futures).
I think that's pretty good
short term confirmation. I'm not so sure I want to trade this move beyond the VXX calls entered yesterday as it's not a major trend.
As for the VIX/VXX, you may recall earlier in the week I posted this chart of the Daily Spot Vix Sell Signal based on a breakout and failure of spot VIX above and then below the Bollinger Bands.
The breakout above (green ) turns to a sell (VIX) signal when the following day we had a close back inside the Bollinger Bands, you can see since then the signal proved to be accurate. However with the charts of this post and the last, it looks to me that VIX will rally while the market makes a short term (duration) pullback.
VIX futures, 5 min are showing a relative positive divegrence here after the negative/sell signal.
More impressively we have a leading positive VIX futures signal on a 15 min chart so the MAy VXX calls should be fine. The nature of the trend we are looking at, a short duration pullback, is what dictated me choosing VXX Calls, if this was a longer term move like the medium term bounce, I'd use less or no leverage.
This isn't about trying to make huge gains using leverage, it's about choosing the right tool for the job.
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