UVXY update

Here is the back link to the previous post/working model chart for TVIX/UVXY. It was mostly bullish while allowing for the possibility of one more small dip lower which we did not end up getting.  I did post this threat model to BOLO for as well but today the chart blew right through all of the potential resistance points.  This smells bullish all the way.  Keep in mind that the chart is up 25% in just the past 4 trading days so we are due for a pullback soon as shown in the blue model but I think it will struggle to put in a 38.2 fib retracement.  I think there is a lot of pent up shorting of the VIX based on the sure and certain knowledge that the federal reserve either "can't" or "won't" let it fall.  Neither of these emotional sentiments make any sense.  If the fed ever had the power to stop crashes then none of the major crashes in history would ever have taken place.  I hope nobody believes that Bernanke or Yellen are any smarter than any other elitist bankers of history.  They aren't.

The market is bigger than the federal reserve despite how the old wizard tries to play his magick to get the herd to believe otherwise.  I've been actively trading TVIX and UVXY for just under a year now and my model view has never been stronger that a major bottom was just put in here.

Buy the dips and of course always use stops near the major turns in order to avoid deep vee seconds or incorrect counts.  For example, we could possibly still be forming a HT with UVXY.  That is not my primary count at this point but neither can it be counted out.


In order to get really bullish we need a break out of $32.  The first resistance between where we are now and $32 is $26.50.  I do like the way the previous high left us with an up-sloping trend line.  Again I see that as trending bullish.