Pages

Monday, February 3, 2020

TVIX and UVXY - Friday the 13th Nightmare Continues...

January was a nightmare for the stock market.

Iran's top General Soleimani was assassinated, 176 people were killed when Iran shot down a passenger plane by mistake, and Kobe Bryant is dead.

Coronavirus has infected 17,205 with a rising death toll of 361 people.  60 million people are quarantined in China.  Countries are quickly closing their borders with the Chinese.  China is becoming isolated, and Coronavirus continues to infect people exponentially.  Fears of a global pandemic went viral.

This is fear, and after fear comes panic.  The selling will only end when panic selling occurs.

In January, the VIX futures curve normalized and moved into backwardation going into March, 2020.  UVXY/TVIX have the advantage with the curve, underpriced relative to VIX.  

Daily

















UVXY bottomed out, and has been rising in accordance with the pattern.  Price and timing of the turn were accurate.

2 day Chart

















Before:

November 14th, 2019 analysis:

2 day Chart















105 comments:

  1. WHO Director-General Tedros Adhanom Ghebreyesus said the world may be “dangerously” unprepared for the next pandemic. At a World Health Organization executive board meeting in Geneva, Tedros urged the 196 member countries to “invest in preparedness,” not “panic.” 

    ReplyDelete
  2. SPX is incredibly weak, and will not be able to surpass today's high of 3,268, but it will be retested again soon. Plan to short that level aggressively.

    3,200 SPX lower low soon, probably later this week.

    SPX is breaking, and will be choppy to start with then fall precipitously to the 200 day moving average.

    Selloff target 3,080 SPX month-end February.

    ReplyDelete
  3. Nice looking charts.
    It looks like we can make a good profit.
    Thank you SC!

    ReplyDelete
  4. SC what's TVIX target for 3200 SPX?

    ReplyDelete
  5. TVIX will really come alive after the market makes the big drops. That's when fear and panic hit hard.

    To start with TVIX will move modestly, and slowly. People will ask why it isn't moving.

    ReplyDelete
  6. Lol tvix down from 59 the short could have netted us 14 points clearly in my eyes it moves down faster there is more money made on the short 80 I will short this if we hit 3100

    ReplyDelete
  7. It's important to just wait until everything has lined up properly.

    ReplyDelete
  8. Correct me if I'm wrong, but you see 3300 more or less, then a drop to 3080 by end of Feb? What is the price target for uvxy? 24ish?

    ReplyDelete
  9. What price are looking for today?

    ReplyDelete
  10. SC still looking to buy tvix today?

    ReplyDelete
  11. SPX has already surpassed your 3,268 level by 30 points and is at 3,298 this morning. This correction will be over this week or the next with one more down thrust (capitulation), which will be bought with both hands. UVXY is very weak and will NOT go above $21 as you project.

    ReplyDelete
  12. https://www.youtube.com/watch?v=72zNOlcbo8A

    ReplyDelete
  13. Yes, SPX gapped over my resistance this morning. It may effect timing. This is why it's best to wait until we see everything unfold.

    I won't take a position until satisfied with the setup. Until then wait.

    ReplyDelete
  14. dec 3rd and 4th gap will be filled question when

    ReplyDelete
  15. Even today I notice SVXY lower high compared with SPX.

    Another warning sign...

    ReplyDelete
  16. I'll let things mature further, but the warnings are mounting.

    ReplyDelete
    Replies
    1. SC is it time to scale in shorts with SPX retesting its 3338 high?

      Delete
  17. sc dont you think a 2 day chart is to short to determine direction?

    ReplyDelete
  18. I'm expe ting new highs then a big smash down

    ReplyDelete
    Replies
    1. I doubt we will see new highs - https://invst.ly/pr2xf

      Delete
    2. Well we are very close here maybe double too spx
      Transports dont look good
      Qqq hit new highdji back in channel

      Delete
    3. The QQQ as made a new high and the comp
      TVIX is a trading dream I bought a that 4360 and sold at 46

      Delete
  19. Tvix seems to be down so much more than the vix

    ReplyDelete
  20. this was easy to see coming.....wall street has picked their winner and they were not going to let a sell off take his night and acquittal from their pick.....

    ReplyDelete
  21. I entered at an average off 48.0 on TVIX yesterday, SC - on your chosen date. Its looking like you were pretty darn close. VIX coming alive.

    ReplyDelete
  22. You can bet your farm that you will see new highs. Nasdaq is already hit an all time high. There is plenty of momentum left in the market with capital flows from Europe and now China to add to that. Welcome to the final "exuberance phase" of the markets where DOW can get to 34,000 to 35,000 by year end or even higher.

    ReplyDelete
    Replies
    1. you make it sound like it will go straight there

      Delete
    2. trump will not be impeached market will break new highs then drop

      Delete
  23. Yes, SPX will see new highs but SVXY looks much weaker relatively.

    ReplyDelete
    Replies
    1. SC - are you waiting on higher SPX prices to short? We could have a possible double top if it reverses here.

      Delete
  24. Here's a chart: https://imgur.com/a/ZNtZYzg

    ReplyDelete
  25. Just basically waiting as the prices settle. VIX is looking strong overall as it consolidates. TVIX probably around $39 so it just need a little time. Maybe another week or so. It is getting ready to make another run.

    ReplyDelete
  26. Bitcoin is coming close to the 10,000 target. Time to exit. Doesn't mean it can't see higher, but we caught the bulk of this last move.

    Will post bitcoin chart soon.

    ReplyDelete
  27. Replies
    1. TVIX looks good. I am just waiting for it to decline a little. It needs more time.

      Delete
  28. The VIX chart is good, and expecting VIX 22 in March. TVIX $65 is a good initial target.

    Will plan to try entry around $39.

    ReplyDelete
  29. Yea that's what I was thinkin 2 I dhoryed it twice today

    ReplyDelete
  30. So what about the big TVIX target?

    Yes, I am confident it will be hit, but I also recognize that things are moving slowly so we have to have patience and with a realistic time frame.

    ReplyDelete
  31. I actually see TVIX looking larger than I thought. However, I also this taking more time which is fine.

    ReplyDelete
  32. Coming into this year the election was number 1 importance. Now that has been turned upside down. Coronavirus has gripped the market in importance for the coming months...

    The election of course will be on focus later in the year.

    I told you this would be an exciting year!!!

    ReplyDelete
  33. What does it mean tvix looking larger

    ReplyDelete
    Replies
    1. It means in my opinion TVIX is getting ready to make a move larger in percentage than what I have posted.

      However, again, this is going to take time.

      Delete
  34. You’re right, your numbers are very exciting!

    ReplyDelete
  35. R u expecting all time high on spx

    ReplyDelete
  36. The short entry is coming soon about a week.

    ReplyDelete
    Replies
    1. SPX double top target is ~ 3,060ish on a break of 3212...close to your 3,080 target for later this month...

      Delete
  37. i shorted this piece of crap at 44.5 waiting for 39 or lower
    looks like to me we might get over 3475 we get through that we go through 3650 and there is a possibility 4000 plus by end of year

    ReplyDelete
  38. all we had to do is short tvix at 58 and hold it for 10 days and be up 17 points crazy shit

    ReplyDelete
  39. I don't think you have a frigging clue about this market

    ReplyDelete
    Replies
    1. Listen peanut butter Who are you talking to

      Delete
    2. Sorry, but SC has been spot on in this market refusing to short the market as it ascends...don't take offense as this is just a sign of the nearing turn...

      Delete
  40. Replies
    1. A pop here to $45 looks possible, and afterwards TVIX should see lower $39 at least.

      Delete
  41. In about a week TVIX low and then a parabolic run to $65.

    ReplyDelete
  42. I would exit at $45 but you know even at this price TVIX is attractive with $65 target.

    We may even uncut the previous low of $38 a little, but still within 30 days it looks great with $65 target.

    ReplyDelete
  43. Bitcoin has hit the 10k target! I have the next chart coming with target.

    ReplyDelete
  44. Sc u think march will be bad for spx

    ReplyDelete
  45. Thank you.
    I think is the year to BTC and GLD.
    I have now a stop at 9000
    I think they can to down a litle in this 2 months, but is up... I think.

    ReplyDelete
  46. Martin Armstrong wrote to say that the low is in as of Jan. 31st. SPX is not going below 3,200. Whoever is waiting for SPX to hit 3,020 might have to wait a couple of years. GOOD LUCK!

    ReplyDelete
    Replies
    1. 3200 is a far way down TVIX and UV XY could explode to the upside if that happens I will be a big buyer at 39

      Delete
  47. And Armstrong is always right, ha! Read this blog and come to your senses. SC: keep u the good work. I enjoy it.

    https://armstrongecmscam.blogspot.com/

    ReplyDelete
  48. I sure the held* that short on tvix piece of crap

    ReplyDelete
  49. SC, we got $38, is it ready to run to $65? or do you still see lower until next week?

    ReplyDelete
    Replies
    1. TVIX hit $38 which was the previous low, but a lower low is still possible. A few more days maybe..

      Delete
  50. Sc can u please post new charts for spx and gbtc thanks

    ReplyDelete
  51. Sc you are looking for 45 first correct then maybe 38 to 39 again

    ReplyDelete
  52. SC: Your target TVIX implies you also have an idea about how high the VIX schould go. Can you give a reasonable target? The reason for asking: in my country it is impossible to invest in TVIX (by law), but it possible in deriviates of the VIX. Thanks in advance!

    ReplyDelete
    Replies
    1. Probably Europe, I am in Europe and classified as retail investor so it is not allowed to trade US ETFs... they do not provide KID so that the investor be informed for the risks:)))))
      If you are in Europe alternative is VIXL....

      Delete
    2. Yes, the VIX rectangle chart continues to look good. The upper boundary is at 24 VIX. Let's say VIX 22 on the next run into March.

      Looking out further the 60 VIX is also likely to be hit.

      Delete

  53. To bring down the world markets, the communist government in Italy must fall, the government that appeals to Europe, a slave government that accepts all the bullying of Brussels
    on illegal immigration from Africa to avoid problems with public debt. The exchange is, Italy makes a low voice with immigrants without giving problems to Europe and
    Europe thanks by giving economic flexibility to Rome. If this government falls, however, and it seems that little is missing because one of the majority allies in parliament wants to leave,
    Salvini's right wing will mathematically win in the elections and political war will be entered into with Brussels with possible exit from the euro. At that point a Europe in political crisis will do
    collapse all markets, including the American ones.

    ReplyDelete
    Replies
    1. L'Italia ha venduto la sua libertà politica, la sua anima, a Bruxelles in cambio di aria per respirare in un clima di sofferenza per debito pubblico troppo alto. Bruxelles si è scelta un Presidente del Parlamento europeo ( Sassoli ) che è un comunista, nonostante in Italia abbia vinto la destra di Salvini alle ultime elezioni europee. L'Europa ha paura di Salvini l'unico vero ago delle bilancia per la sopravvivenza di un Europa ormai inutile e grassa, grassa di corruzione e alti stipendi. L'Europa col governo italiano attuale, un governo rubato alla destra di Salvini, vanno mano per mano come fidanzati, ma solo per convenienze reciproche, immihgrazione africana che resta in Italia e non va a disturbare il resto dell'Europa, in cambio di rinvio procedure di infrazione per debito pubblico troppo alto. Libertà...Libertà...Libertà....

      Delete
  54. are you still looking to exit $45?

    ReplyDelete
  55. https://twitter.com/guyverhofstadt?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

    This is the Europe that is afraid of Salvini and as for the American Democrats who want Trump headlights with justice, the same is happening in Italy and Europe. Communist judges clear the way for leftist parties by accusing an interior minister of kidnapping for not having docked in an Italian port, an NGO ship full of illegal Africans. Poor Italy, a country in civil war.

    ReplyDelete
  56. Louis: "what country are you from?"
    Holland that is. The reason -yes laugh at loud- there is not a dutch translation of this product(read prospectus). Therefore investors have to be protected, because of the possible losses they will endure.
    Most of the things you trade in and out, Louis, are therefore no longer available in my country. Trading the VIX is possible but only during daytime. So its hard, but hey, it keeps you on your toes.

    ReplyDelete
  57. Circulate on your blogs, make this information viral. France and Germany keep Italian communist politicians by the ball, give them economic flexibility in exchange for silence and acceptance of everything Brussels decides, especially in terms of African immigration. When he ruled Salvini prevented him everything, no economic flexibility because Salvini refused the docking of NGO ships full of illegal African immigration, so Salvini was not going well, they forced him to resign asking for new elections, but then the President of the Republic Mattarella, communist, instead of new political elections, it has formed a new government, but this time of the left, the one that governs now. In Italy currently govern parties that no longer represent Italians, they are the minority in the country, but remain attached with glue to the chairs because they know that with new elections they would be blown away. Italy is no longer a democratic country.

    ReplyDelete