Market and Levers Hook Up

I mentioned the HYG volume earlier and the probability of an intraday "V" shaped move in HYG as it's the go to lever when you need to move the market although this is FAR, FAR removed from any realistic lasting HYG base/support area, it looks like a short term stop-gap measure.

 SPY in green, HYG intraday in red, they've hooked up and are nearly in perfect lock sync.

The QQQ loks like a different story, I don't think it's AAPL, it's not biotechs, but what it does look like is a textbook short squeeze...

See the diagonal trendline with no corrections and low volume, those are the hallmarks of a short squeeze.

NASDAQ Bios aren't behind it, they are actually not looking great right now.

It's not just HYG, but TLT and VXX too, but these are very small, sudden intraday divergences,  it wreaks of panic to get the averages green and you know why I think that is, to give them something to sell in to, but that's a theory and I'm open to others, however looking at everything, it just looks like that's the most likely interpretation as EURR/USD still is not cooperating.

 TLT has a 2 min negative intraday, that's about as far as it goes. Remember bond prices go down, yields go up and equities are drawn to yields.

 As you can see at the 5 min TLT chart things are perfectly in line so this intraday divegrence on the 2 min chart above looks a little like panic, which I suggested we might just see with that much gas in the tank and nothing to sell in to.

The 3rd asset in the typical lever called SPY Arbitrage is VXX, short term VIX futures. Earlier I showed you their chart and showsd they were building, but not quite where I wanted to replace the UVXY position yet, that was a good choice. This is VXX 1 min, again a very short term intraday chart and a very recent negative divegrence which if sending VXX lower helps the market, which looks like it needs all the help it can get at this immediate moment.


If this is the best the SPY can do for even an intraday positive divergence, it's going to need every penny it can squeeze out of HYG as well as the others and maybe then some.

 a 1 min leading positive ONLY on the SPY.

The Q's aren't any better with an in line chat on the 1 min intraday, not even leading.

And at the 10 min QQQ that saw some earlier damage, it's not totally fallen apart, but it's not far from a couple of good hits and it may just do that.

As for the IWM, this is the intraday tend from strong to rotating out yesterday and leading negative, it looks like it has spent all of its gas and is just waiting around to see if it can draft or not.

The 15 min IWM already has some decent damage and this is probably what I'll be looking at for additional signals before making a decision about IWM puts or other short positions mentioned last night.

 Again, in my last post I mentioned possible desperation and panic, this looks a lot like it in trying to get out of some positions from earlier in the week (partly last week) on a short term , small base/bounce position.

It's very interesting how strong the multiple asset correlation has been. I think this may be the key and am trying to divide my time between watching the market and tone, seeing what's moving it and how long it can hold out and what opportunities are available and if this is the right time to take a swing at them.

Very interesting day from my perspective.