VIX UVXY Reversal Pattern
Updated
QQQ SPY and the indices all had late afternoon Bearish Engulfing Candles Tuesday afternoon before the Fed Minutes release
I have charted the VIX as a ratio with SPY. IA down trend is persistent.
The ratio is at the lowest seen. However, RSI divergence with a slight increase in relative strength
as well as a dropping score on the Choppiness indicator both point to a reversal.
I will play this with call options on the UVXY ETF expiring on September 19th hoping to 2X the trade with
little given that the macros will hold up or raise UVXY as a bear market rally may stagnate or burn out.
What is your option?
I have charted the VIX as a ratio with SPY. IA down trend is persistent.
The ratio is at the lowest seen. However, RSI divergence with a slight increase in relative strength
as well as a dropping score on the Choppiness indicator both point to a reversal.
I will play this with call options on the UVXY ETF expiring on September 19th hoping to 2X the trade with
little given that the macros will hold up or raise UVXY as a bear market rally may stagnate or burn out.
What is your option?
Trade active
The option is up 12% since overnight in the early going with the federal minutes out this afternoon.Trade active
The call option ($9 for 9/26) is up 38% since late yesterday. Looking for more as fear drives UVXY higher.Trade active
Another great day for USVY- the fear gauge is measuring the market pessimism!Trade closed manually
I am taking another third of my calls off the table as there is RSI bearish divergenceand a MACD flip on the short time frame chart. If tomorrow is another good day maybe I will reload.
Trade active
Accumulating more UVXY on the price drop awaiting the reversal of SPY /QQQ uptick] after the Powell speaks tomorrowTrade active
Nice 8% pop this morning on the stock much much higher on the call options !Disclaimer
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