Wednesday, August 12, 2015

Aug 12 - VIX/ VXO major reversal

After being well north of the upper BB, VIX staged an impressive reversal to issue a black exhaustion candle.  Remains to be seen whether it is the real deal, but combined with positive divergences on the 1/2 hr frames, it looks more than likely we will get follow through up in equities.

Positive divergence on the hourly.

 Bullish candle resting on lower BB.  If this fails tomorrow we might see downside to test this year's support.

 2 hr frame has positive divergence along two time frames which is setting up for a big move up if it triggers.
 $VXO printing a black reversal candle north of the BB generally marks inflection points but in the past 2 years there have been a few occasions where it has failed.

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May 15 - Closed out IWM puts for +120% and picked up DAL and HD Jun calls

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