Monday, August 18, 2014

Keep an eye on TVIX lest it fullfull my original warning of "mid to low 2's..."

I just had a close look at TVIX and I see a very interesting pattern forming.  I can easily count these as a series of "3s" as in a-b-c instead of 1-2-3-4-5.  This is possible if the formation is a triangle and in this case it could well be an expanding triangle.  Nobody knows if this will happen or not but we should respect the potential for it, and just as importantly, know what to do if we see that 5th wave form with 5 waved down in the C wave, especially if it results in a throw under as shown.  It would be a strong buy the minute it broke back into the channel with a clear sell trigger built in (any fall back out of the lower rail to the down side.

This kind of ending would make my day.  I never get this lucky so I don't expect it but if they are bold as to drive it down there, I will be so bold as to scoop it up on the end of 5 of C.  Please, please let it happen!

2 comments:

Anonymous said...

Great analysis thanks Capt. Have been wondering the relevance of a day of choppy sideways action. Stops in at $2.64 so will see how it plays out. As always, your insight is appreciated. MackaNZ

The Captain said...

Macka,
Thanks for the kind words. Some people understand "odds and not certainties", others don't ; )


Sideways is not especially good for shorts even though a relief sell off is called for. See today's TVIX update.

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