Market Update

Patience is the hard part here. For instance, one of the positions I'd like to add to for a bounce in the market is short UVXY as it will move opposite a market bounce so when I saw price in UVXY coming down fast, emotionally speaking, it made me want to panic and fill out the rest of the position immediately.

 UVXY 1 min chart with good confirmation here on the 1 min chart. Note the fast move to the downside, which makes me want to abandon patience and fill out the position immediately.

 However at almost the exact same time the NYSE TICJ chart which has been rising and pulling the averages together while sending UVXY down, suddenly breaks the upside momentum and comes down a bit.

This should send UVXY back up a bit from here and the market back down to do some more work and hopefully give us more confirmation.

This is the UVXY 3 min chart which is already in place for a move to the downside and the 1 min chart is confirming, but remember the process of migration.

That means the 2 min UVXY chart should start looking like the 1 min which is confirming today specifically and the 3 min which has been in place for a bit longer.

The bottom line is , if the 2 min chart can't confirm like the 1 min and 3 min, then I don't want to add any more risk via UVXY and I'm happy sticking with the partial position opened yesterday. It's only if I see the probabilities for the trade improve significantly that I trust the move and am not concerned about adding more to the bounce trade. 

The point is, patience is difficult especially when a trade "seems" to be moving against your set-up, BUT IF YOUR CONDITIONS AREN'T MET, THEN MAYBE YOU SHOULDN'T BE IN THE TRADE OR AT LEAST NOT ADDING TO IT.

That said, the Custom TICK indicator is showing a much better looking chart today for our bounce scenario so it is progressing as well.