[UVXY] update

At the backlink I modeled UVXY as likely heading higher today but warned to set stops at $10.40 because the $COMPX breakdown was not confirmed yet.  I wrote "A move below $10.40 says that this model is wrong.   Bet boldly on the dips but use stops folks."




Today's snapshot shows that these words represented a bit of wisdom.  Look how the gap down took out the stops at $10.40 before continuing down.  So I got stopped out at the open and then bought back in near the close @ $9.61.  Stops are currently set to $9.49 but I am not expecting any downward gaps now.  Notice that what we have right now is still an inclining double bottom.  So this could in fact just be a deep vee 2nd wave shakeout.  Only time will tell but if this breaks to a lower low then we could end up seeing $8 per my original model.  I'm not betting that way at present.



If the current action looks really bullish to you, observe how $COMPX tried to power back up into the channel but could not do it.  Typically when you have a gap up or down, that gap needs to take out the next resistance or support in order to be considered a trend continuation signal.  I think it shows weakness to have gotten rejected right at the hoop like this.  Perhaps it will prove me wrong on Monday but I'm holding UVXY over the weekend in anticipation of this being the back test from below/goodbye kiss on the $COMPX 240 minute chart below.