I just closed the UVXY position for about a +10% gain, just because of the near term charts, this is not a "Week Ahead" post/forecast, I have too much to look at, but near term, the rotation of the averages (IWM underperformance and SPY/QQQ outperformance ) looks more probable.
Other than the charts below showing positive divergences in to today's lows, HYG/High Yield Credit also put in a positive divegrence, granted this is a day or part of a day, but it still tells me there's likely something up in to the F_O_M_C as originally theorized Wednesday for market performance in to the F_O_M_C based on the fact that this is likely the last period of time or perceived period of time that Smart Money can square positions with an increased probability of a rate hike sooner than later based on last Friday's NFP payrolls data.
My how fast perceptions change.
I'm not going to comment too much because of time, jus t the charts and timeframes.
These are some short term charts focussing largely on today, but several with gas in the tank from this week. Note the IWM charts are the opposite of all the others, this is why I suspect that the IWM rotates out at least on a relative performance basis.
VXX and its derivatives deserve a post of their own, they have some short term negative divergences today, but at 10-15 min and longer, they look spectacular, this must be taken in to consideration when trying to determine the most probable course and timing in the market over the next few days in to Wednesday's F_O_M_C.
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