Thursday, November 13, 2014

Volatility Ahead Part 2

Earlier I showed you the first intraday positive divegrence that I suspected would become something more, volatility in price multi-directionality is not done, which is good news for those who are still looking to position, as far as anything looking like a head fake move, IWM or QQQ perhaps, that's good news for a move to stage 4. Tomorrow is an op-ex and they usually pin near Thursday's close, that's what I suspect this is about, but I may be wrong and when we get in to increased volatility the chances of short term divergences getting run over increase, although not common.

Here's the evidence I have that I think is objective pointing to at least 1 more move on the upside to get bulls cheering even louder which they are doing today in very arrogant style on stocktwits, the market always humbles you.

First the SPX and derivatives...
 SPY intraday 1 min with a second positive divegrence.

SPY 30 min, strongest probability outcome solidly down.

SPXU 3x short SPY...
1 min negative like the SPY 1 min positive and larger picture,  highest probability resolution...


SPXU 30 min strongly leading positive

Levers / SPY Arbitrage...
 TLT in line, as I suspected the move higher in rates/lower in TLT was accumulated, this is in line, no real market edge short term.

Larger picture 60 min TLT leading positive.

TBT 2x short TLT
 Short term 1 min in line, no market edge.

Larger picture leading negative confirming TLT

VXX short term 1 min slight negative

VXX larger picture (UVXY) leading positive in a huge way

HYG larger picture in line with the sell off.

Short term 2 1 min positive divegrences like SPY.

I suspect it's an op-ex pin, but it's not anything major.

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