GO LONG VXX!Accumulating here at a pierce of even # $16. Nice hedge against the longs in the portfolio in the meantime. Upside targets $16.60, $17 and beyond.
ATMP trade ideas
VIX - Short VXX!VXX automatically loses value over time. Shorting VXX in complacent market has a good risk-reward!
VXX - Short any pop!VXX is acting strong today. However, market has animal spirit right now and it pays you if you short Vol than going it long.
Short VXX as soon as it hits 20MA!
Stop is close above 50MA!
More bullish reversal indication by Heikin-AshiAll marked by ellipses:
- Daily haDelta and haDelta+
- Daily MACD
- Daily EWO divergence
- 4H positive divergences and cross above mid lines in haDelta and haOscillator
- 4H EWO
Key levels: 19,47 /19,94 and 21,74-22,00 zone
Positive divergence - may be a buy today What do we see in the depth?
- Ichimoku is bearish, but...
- Heikin-Ashi signals there might be problem with bearish momentum! haDelta and haOscillator show positive divergence -> late sellers are not so strong, they already face some protecion buyers.
- If EWO ticks higher next, it will also strengthen positive divergence
- Key levels are touch lower: Tenkan at 19,58, Kijun at 20,33. Kumo and 100wma are unch. at 22,35
If you can catch something below 19,60, that can be a reasonable long with a 18,65 stop loss.
Make sure you do not buy too much! Position sizing and money management is the most important in early counter trend trades. A lot more important than the exact entry level!
Together with VXX you must follow SPX as it reached 2269 short term key level too!
When to buy VXX?A trend is a trend, and simple bottomfishing doesn't pay!
You have to know when to enter a counter trend trade. You have to know your risk/reward.
Daily:
- Bearish trend, bearish Ichimoku. Volatility is smashed.
- Heikin-Ashi candle may signal a local bottom, haDelta+ crossed up.
- Bearish supp/res levels are: 20,40 (Tenkan) is at 22,38 (Kijun Sen)
- EWO and MACD are bearish.
4H:
- Bearish Ichimoku
- Consolidation in Heikin-Ashi
- Bearish EWO
- The minimum requirements for a counter trend swing long are: close above Kijun (red line), make a higher low even if retest lower on next leg, EWO has to turn green to confirm higher probability of success.
All other attempts until the above criteria are just gambling with low probability of winning the trade.
- 4H supp/res levels: 20,03 Tenkan / 20,74 Kijun / 22,38 Senkou A (this equals to daily Kijun)
