$SVXY – Just a heads up…

If you haven’t been sitting on the edge of your SVXY already, now is the time.

Back in January I did the bookend to this post in this link: $TVIX – Just a heads up… and reiterated it when the explosion began in this link: $TVIX – From heads up to launch up….

TVIX was at 40 or so then and hit a high of 1000 yesterday, while its little sister in the land of leveraged VIX relatives, UVXY started its own spectacular launch from 12 or so and hit 134 yesterday.

There’s only a month of it but enough of this past history. Can anyone hear me laughing at how insane this rum has been? It is time to turn attention to opposite trade on the VIX.

See the charts below.

VIX already is going sideways at an extremely high level but until today TVIX and UVXY didn’t seem to notice. Both took new stabs the highs today and closed below both their respective opens and closes from yesterday. While they haven’t quite broken any trend lines or any reasonable moving average, they both have truly big ugly, ominous, candles.

If TVIX and UVXY didn’t know the VIX might be done with its move until today, it would appear their leveraged counterpart, SVXY, hasn’t quit notice it yet (see the chart). With all this volatility ripping back and forth, it finished up a relatively paltry 3.3% today and produced a perfectly reasonable little white candle.

SVXY goes up as the VIX goes down. If it gets moving it can hit 35 in a flash, and 50 in a quick explosion of its own.

So heads up – there’s a good chance SVXY runs up tomorrow. If not tomorrow, soon…

(click on the chart panel for a larger view)

$XIV – swing trading the 5-day average

Just a simple notion for XIV – following the blue line for swing, day-trades and scalps…

XIV is an inverse VIX based ETF that goes up when the VIX goes down, and down when the VIX goes up.  Especially easy to trade long as the market rises and volatility decreases. Its opposite is VXX or the wild and crazy leveraged UVXY.

See the blue vertical lines on the chart below for examples of entries along the five-day exponential average.

And for exits, the idea is to take frequent profits because XIV swings and snaps like a pennant in the wind.

This is just for entertainment and education purposes and not to be construed as actual trading advice.

(click on the chart for a larger image)

xiv_2016-11-09_1626