GRN trade ideas
VXX: Expecting a potential major moveHistory has a tendency to show us patterns which can make trading much simpler if you know what to look for. As I've said before, we finished a wave 5 of 5 from the bottom of 2009 which to me tells me we are about to head into the biggest recession of my lifetime. Now, I don't pretend to be a fortune teller or foresee the future, but I do tend to rely on the past to better predict the future of the markets. So based on all of this, I have found a pattern in VXX that I found interesting. As the chart shows, during the course of the last 5 years, VXX has made some interesting patterns which shows that around the same point in Fib retracements during the most volatile times since 2017, right before those events VXX sat around the same junction just above the 2.618 Fib retracement level. If this pattern were, to say, repeat itself again, you're looking at VXX returning to the point where the first peak of the downward move began or beyond which would place the VXX at $183. Now I'm sure some of you are looking at this and saying I'm crazy and maybe I am, however, I like patterns and fibs and if there are two things that have proven to be true in the markets its patterns and fibs.
Not financial advice
VXX - Arb Low into New ATL's for 2022 @ 17.30We are buyers of the Implied Lower Targets.
VXX is our preferred Instrument as it is the 30 Day Constant Maturity.
Trade Plan Buys on Inverse Ladder:
18.45
18.01
17.55
17.3
16.58
16.14
15.78
15.42
We'll hold our nose for:
25.24
27.41
28.87
30.05
31.23
32.69
35.06
VXX - 4 Hour / 17.55 LostRetest Lows and fail appears to be in trade into Friday.
VX Complex is being taken to the Woodshed again.
No reason to Buy, no real reason to Sell.
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Meandering.
Wandering.
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Low to Low Draws is becoming a horror show.
VXX Bearish inclined Naked Calls 7 Jan Expiry (Jan Track 1)Whats The Plan/Trade/Thought
I entered the trade because the volatility was high and the premium was good. But because of this I did not do the Mindfulness exercise before entering and broke my rule. This being a Call was a more bullish take on a market that at the moment felt like it was bearish ranging.
However I entered because the Strike was 60.34% away and had good premium. Also the 3 Dec showed a solid rejection from the S/R line at 28.5. I expect the situation to stabilise or slow down after both Omicron and Fed Interest rate situations
I Feel
I’m doing this after the fact. So looking at the recent market drop on the 20 Dec I feel less confident. But I am comforted that this trade will end fairly quickly on the 7 Jan.
Imagine Yourself Taking The Other Side
All of my other trades for the month of Jan will be bearish. And as such I do feel somewhat anxious. Which is not right.
Imagine Yourself As A Neutral Observer
I rushed this and I am not confident
Look For New Information
Omicron infections are rising at an exponential speed and this will result in knee jerk reactions. But this might already be priced in.
How Do I Feel Now
Hoping for the best and I don’t like it. I must not do this rash trading again. No matter how good the premium looks
Trade Specs
Sold 90 Calls @ 0.81 - Strike 35
% to Strike 60.34%
ATR % is 100%
BP used 78k
Max Gain: est $7290
VXX - Bares ObservationAfter a one tick front tun of our PO @ 17.55,
signs are growing positive.
The ES remains in Distro - it is mild, but has
the potential to expand as NQ BANK / Financials
have filled their Gaps.
We should VX begin to perk up in January, there
remain far Larger VIX targets for VXF to the 15.25s.
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We'll be buying when this begins to perform and hold the
lows. For now, we patiently await a better structure.
VXX - Arb Low into New ATL'sNot ready for Prime Time, but then with Lower Objectives below
and Daily Lows day after day with lower Yearly Lows...
It is beginning to look as if the VFX could trade into the 15s at this
rate - currently 19.05.
Volatility continues to be beaten with the Ugly Stick.
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There has not been a Retacement exceeding the .382 in 10 days with
1 and only 1 exception.
A new streak for the VX complex.
The Fed's mercurial puncture wounds continue to press and with CASH @ 17.15
and 15's in sight, one wonders how off base this will trade given the enormous
Risk profile Globally.
VXX Bearish inclined Naked Calls 26 Nov Expiry (Nov Track 1)Whats The Plan/Trade/Thought
Market Bullish Stance
The overall market seems to be back on it's bull run. This is reflected on the SPY and NDX who have both made new highs
Sep Consumer Spending has lost momentum but still grew at 1.4%
Sep Personal income was up 0.9%
These factors, including the upcoming festive year end period. With less COVID19 restrictions should result in an increase in consumer spending with an appitite to accept raising prices (At least for this quarter)
Est price to strike is around 54% which is a pretty good buffer and is around it's previous high. This is shielded by an S&R line at 28.5
I Feel
Confident and safe
I'm happy with the risk profile and it is also 50% hedging my RVLV trade
Imagine Yourself Taking The Other Side
We could be at the bottom and a retracement is a possibility at least short term
We expected Nov's market to be bearish volatile so this bullishness might be short term
Imagine Yourself As A Neutral Observer
Strike to price distance seems safe
If we read the market for what it is now. It is bullish
While some volatility might come as we close Dec due to the US debt ceiling
Look For New Information
US debt ceiling implications and the upcoming review date on the 3 Dec will cause some market volatility. For now while the country has a short reprieve from the threat of default, Yellen said some investments in funds through December 3 will remain suspended
How Do I Feel Now
Ready to enter!
Trade Specs
Sold 70 Calls @ 0.40 - Strike 30
% to Strike 46%
ATR % is Around 12%
BP used 65k
Max Gain: est $2800
VXX - Interesting VX ParticipationNothing to see here and that may well be the indication.
Implied Volatility is unhinged:
FEB 18 2022 CALL
17.00 - 75.59%
18.00 - 84.90%
19.00 - 92.54%
20.00 - 99.91%
21.00 - 107.26%
22.00 - 112.79%
23.00 - 117.91%
24.00 - 123.21%
25.00 - 128.10%
26.00 - 131.70%
27.00 - 135.50%
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Clearly, the VXX believes the market has outsized potential for
large price swing.
With the Prems High, the underlying will be the better Position.
Gap Below, Gaps Above for VXX.
VXX - Nuked / Larger Daily EXT to 17.55UGLY
NASTY
CRUSHED VX
CASH / SPOT SMOKED
VXF SMOKED
CURVE SMOKED
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They will accumulate FEB / MAR.
JAN 20.15
FEB 22.25
MAR 23.63
APR 24.76
Objective for 30 Day CM @ 17.15 - And I'm struggling to believe that Price Objective.
VXX - New LowsVX Complex wrecked again will provide an opportunity for RT.
Too early in the VX Cycle to Bid here without further Downside Risk.
If it can sustain the Lows and Hold, we begin to see a VX Curve Flatten.
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Gamma Squeeze failures are keeping the protection Bid muted.
While profit-taking remains the sell in 7/11.
Hopefully, they let the foot off the gas there as a squeeze would be welcome.
BUying low ticks in NQ and NYSE has been the way to trade it as the ALGOS
are just running the MIcro Ranges off the Hourly.
VXXoversold & signs for a recovery..
rising volatility is now problem for the market - SPY made a slightly new ATH. normaly we should see a fight
between bulls & bears here. if the bears win -a bigger rise would be normal. otherwise a rangebound trading with no clear st trend leads also to a rising vola..
VXX - Trending Cloud FailureAfter early Entry failed, SOH became the operation.
Unable to Push through the Trending Cloud proved to
be the warning sign.
It was correct, and we were frankly lucky to have
done nothing as it was difficult.
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Patience won that round as it wins about every round.
I can't imagine the misery there, as the 120 Minute reversal
was surreal in nature, an 11.5% Nike Whoosh Buzzsaw.
A full retracement is underway.
Volatility was crushed, beaten with the Ugly Stick as
the Raven went full Edgar Allen.
VXX - No Break of Trending CloudWe are cautiously observing the 30 Day Constant Maturity Short End Curve.
We've seen 2 Taps of the Daily Trendline and a move above, with successive
Higher Highs.
For 2021 the Full .500 was exceeded.
The 55 SMA, on balance, is acting as Support.
At present, the ES is holding up better than Tech, by no large margin, but on balance,
better as the NQ continues to grind lower, making successively lower lows, the ES continues
to pivot around and now below the 4616 Level.
Unable to break through the Trending Cloud has us on the sidelines for now, subject to immediate
change should the Trend Cloud be broken.
At this juncture, we prefer confirmation as opposed to taking the trade, positioning early @ 21.785
was a mistake, as there were lower entries. In addition, there is no reason to chase at this point in
time.
This is what remains the signal for entry and we've committed to SOH last Friday for the VX Complex
as there is time and although our bias may be down due to larger indications... we've seen far too
many unexpected reversals at times where the duck, dodge, dip, dive, jive tribe has managed to
pull unexpected and unwarranted Dwight Goodman moves.
126 minutes to go until the Raven unloads, the FED will update the Dot Plot today.
Although we believe Higher is the path... we'll let it prove out. It has not as of yet.
Patience
VXX - Abandoned Ship2.14 P/C at present which should peak near 2.24.
Many Traders believe the FED will Punt.
We do not.
The VIX itself, being left for dead during a rollover.
Meanwhile, CALLs are selling at 354% to 427% prem
to PUTs.
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INdices are rallying, as they do ahead of the FED.
Money Flows are positive into Equities, into Protection
we are back to extremely negative.
Captial continues to Slosh around while Executives at
the 7 continue to Sell Shares - MSFT is a solid example
where One ETM sold 50% of their shares.
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The Weekly Charts remain our point of reference for
rejection, were it to expand the Channel, then it is an
entirely different conversation.
An over-throw is possible.
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As Divergences continue to build on the Larger TFs
we will Observe the Weekly UTL.
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What is fragile does not prefer disorder or random.
It seeks stability and predictability. The fragile is
damaged by infrequent events.
In particular, when they become increasingly frequent.
INcreasing Amplitudes within increasing Frequency, are
a warning.
Events Unknown, unseen, unaccounted...