SPX plunged to the blue arrow low. The Cycle target and timing proved to be very accurate.
Next, a dip is likely to occur within the next few days. However, overall the Cycle shows a strong rally to the pink arrow high.
Before:
SPX Cycle:
I'm expecting some sort of dip soon, but it won't last long. So I'm looking for an entry into XIV soon.
ReplyDeleteHey SC
DeleteWhat entry level range you looking for with XIV?
Cheers!
Can see $28's.
DeleteMaybe not even that, but should see $29's. I am expecting a pretty strong rally overall according to the Cycle...
DeleteSPX likely on the upswing into at least late February, quite possibly March.
ReplyDeleteBought XIV at $29.75.
ReplyDeleteXIV has 25 handle today, I got into the CAD version (HVI.TO) but still a bit hesitant to increase position however I think market is oversold. Just wondering if your opinion has changed. thx
DeleteThe Cycle looks fine at this point, no change in view.
Deletehi,
ReplyDeletei was wondering how can i learn to trade with cycles? and how do you do it? where i start? is it any software, tool?
Hey SC
ReplyDeleteyou dont think weekend event will affect monday market at all that is worth the risk to wait till it over before entering your XIV position?
Also are you able to provide position sizes of your purchase? like small, medium, large.
Cheers!
There'll be some wobbles here and there, but bottom line is that this is a strong spot for SPX in the Cycle. I expect a strong push up into February overall.
DeleteLarge position.
EMINI CYCLE
ReplyDeletehttp://traderjoed.blogspot.com/
SC, what's your upside target for XIV?
ReplyDeleteI think this is a very positive spot. XIV $40 to $45 in Feb/March.
DeleteDoes this target change based on the new lower starting point? thx
DeleteThe target remains the same, but looking at March now since this is taking some extra time.
DeleteHey SC
Deleteso if the target aint going to be reach till March, what you plan on doing for the entire Feb?
Cheers!
The Cycle suggests Feb looks quite positive, and so I would stay positioned during that time period.
DeleteVIX heading for 12. It looks quite negative.
ReplyDeleteHey SC
Deleteyou got stop out of your VIX position? doesnt look like it heading towards 12 anytime soon.
Cheers!
No, still positioned. It's choppy but overall should rise.
DeleteNow that the Greek election is done, everything looks positive until Greece looks to renegotiate their debt. They have a payment coming up in March, and interestingly my SPX shows some turmoil at that time.
ReplyDeleteLike your work SC! Maybe this might be added value to you.
ReplyDeleteWant to know WHEN the market might turn?
Check out www.tripstrading.com
Hey SC
ReplyDeleteUVXY up almost 20% today
any thoughts on today's actions ?
Yes, the market is choppy, but my view remains the same. SPX is likely to rise and VIX dramatically fall into February according to the Cycle.
ReplyDeletethose are great returns 20% in 1 day darn eh
ReplyDelete:-)
looks like a possible 1987 style crash within a week. Thats a "Possible crash" ...being long right now is too risky
ReplyDeleteHi SC: any updates on the Gold cycle? Wondering if this bullish trend continues - many seem to think that we have entered a new gold bull market.
ReplyDeleteYes, I have an update to post. It'll be out shortly.
DeleteThank you! We're in the sweet spot of the Cycle, very positive.
ReplyDeleteThe Cycle shows that the market will climb the greek wall of worry. I am well aware that this is an expensive market, but the Cycle shows it getting more expensive as it moves up to Point A.
Since SPX is approaching the highs again it is natural to see some resistance and bouncing around at this level.
ReplyDeleteDips are likely to be small though. The Cycle is downright explosive to the upside.
People are still nervous. Once SPX starts breaking through the high though, the moment of realization will occur, and the VIX meltdown to test it's summer low.
ReplyDeleteThe market is teasing the bears right now. It has whipsawed up and down for a month but it's getting ready to break out soon to the upside...
ReplyDeleteSC you have gone ultra bearish just before Xmas to ultra bullish.
ReplyDeleteWhat gives?
Your cycle was meant to show a large VIX spike months ago. It's not cycle if it doesn't at least play out to some extent.
The strategy is simply to trade each move in the Cycle, one at a time. The Cycle was bearish before xmas and the market declined as predicted. The Cycle turned positive in January, and the market is rising as predicted.
ReplyDeleteThe Cycle is playing out as expected, and I'm extremely pleased with the performance. I do believe it will continue, and huge moves are ahead.
It's very exciting!!
SC, you bought xiv at 29.75, and you expecting s&0 to 2150. it Is already at 2100 xiv will just make it to 31 or so . you will be break even on this trade
ReplyDeleteI expect XIV to be about 15 to 20% higher at the target area. Probably around $36.
DeleteSC，
ReplyDeleteJust want to make sure that I understand it correctly. S&P is expected to reach 2150 or so (XIV to $36), and then there will be another drop to 1990, before the final surge to a higher high, which will take place in May/June? and then the big correction will take place?
The target is SPX 2150 or so for this move and then the next target is a decline to about 2010 SPX. Yes, then another runup to Point A which is the final high in the Cycle.
ReplyDeleteYes, you have the general idea.
The Cycle is currently positive for SPX!
ReplyDeleteI am expecting 3-4 days of churning here sideways and then spike up to around 2130 SPX later this week. Planning to take profit at that point!!
sc, how low price for uvxy where you will buy it
ReplyDeleteLooking to take profits in XIV soon, and enter UVXY. Around $14 looks like a good spot.
DeleteSc, when is top forming, this whole thing is low volume
ReplyDeleteSoon, yes SPX is nearing the next Cycle high. The Cycle indicates a little higher yet, but we're getting there. I'll update when it's ready.
ReplyDeleteMarch looks choppy. I plan to make a few trades.
Sc, you are mentioning march to be choppy. But do you expect s&P to touch 2000 again in march, as shown in your charts before making new high
ReplyDeleteWe have not quite reached the pink arrow high yet. SPX is currently grinding up into that high. I'll do an update when that occurs.
DeleteYes, once the pink Cycle high is reached then the Cycle does show a downturn. Both March and April are going to be quite choppy imo. For now though SPX is on the upswing.
Hi SC, where would you take profits on XIV? around $35 or so?
ReplyDeletethanks
May see a small dip for SPX with some chop next few days. However, just ignore that. My model remains positive overall up to 2,150 SPX this month.
ReplyDeleteFor XIV there is strong support around $30. I'm raising my target from $36 up to $38 this month.
SC, whatever happened to the "second yellow cycle low" for uvxy you said occured last fall?
ReplyDeleteIs that pattern no longer valid?
Is 50-60 points down your small? That is big.
ReplyDeleteSC said XIV may drop to $30... this has not been violated yet. Given that Europe will start €1.14trn ‘easy money’ program on March 9, the whole picture may not be as bad as it looked on Friday. Let's see how it goes. Maybe there is a strong support at 2060 and then the strong rally will begin there.
ReplyDelete2nd yellow arrow is at about 13, this time vix came there , higher lows as it show in SC picture
ReplyDeleteYes, the second yellow arrow low in the VIX Cycle occurred early December. Ever since then, VIX has been higher. The VIX Cycle shows VIX churning sideways and choppy after the second yellow low is in place. This is what has occurred. So yes the VIX Cycle is valid, and has continued.
ReplyDeleteAll the Cycles work together. I felt that the SPX Cycle is a good Cycle to show the finer detail of how the market should behave following the second yellow arrow low in the VIX Cycle.
I'll be showing more of the VIX Cycle as it matures. The VIX Cycle will become very exciting once the SPX Cycle matures to Point A.
So rather than show VIX grinding along, it is more interesting to look at SPX during this time period. We know the VIX is carving out an important long term low. For VIX futures, the timing is important. We want to know not only that VIX is forming a long term low, but also the timing of when VIX will make the major move. By using these Cycles together we answer both questions of Price AND Timing.
DeleteInteresting to see VIX holding up today even though the market is up overall.
ReplyDeleteSC, do you expect the VIX to test the lows again before any major spikes?
Yes, I expect to see VIX 12 this month and SPX 2,150.
ReplyDeleteHard to say XIV has support as you can't really chart the ETF, you need to chart the underlying symbol......strong dollar could mess with your timing....it might have made the move already...
ReplyDeleteBeing objective here and I'm not trying to beat up your cycle call, so far your cycle is doing well. Where would you get out of Xiv via downside SPX target 2018 spx?
DeleteSPX should not go below 2,000. The Cycle is very positive.
DeleteBy the way, you are right. These etfs do not inherently have support or resistance. When I say there is support really I'm just stating a price level based on my interpretation of the Cycle which shows highs and lows.
DeleteMy work isn't based on charting the etf itself, but rather interpreting the Cycles.
So if SPX trades below 2000 you are abandoning your call?
DeleteMy call is that the SPX Cycle is bullish for about 2 more weeks to the next high.
DeleteSC, what a difference 4 years makes, huh? From extremely bearish calls on the SnP500's future back in 2011, 2012 and 2013 to you now being long SnP500 at 2000+.
ReplyDeleteDid your model change from back then to now? It seems you are still using the same charts.
Can't imagine how the market will go up with the US Dollar on a massive tear based on rate increase expectations. It looks like the US Dollar is the only game in town now - everything else is at risk of a severe decline - just look at the Euro...
ReplyDeleteIf market rebounds xiv will g o to 34 or max 35
ReplyDeleteSaw the $30's tested yesterday, and strong rebound.
ReplyDeleteSCMarch 3, 2015 at 9:32 AM
"For XIV there is strong support around $30. I'm raising my target from $36 up to $38 this month."
SPX dipped a fair bit, but the dip for XIV has been minimal. When that happens a strong rally can be expected, and soon. It is definitely showing relative strength.
ReplyDeleteI think this dip either finished yesterday or tomorrow. Next week, I think it will surprise people how fast the market rises.
Planning to take profit in about 2 weeks!
ReplyDeleteHey SC
ReplyDeletecongrats on the calls so far.
what your thoughts on crude?
Cheers!
I've been watching the Russian stock market and the chart looks quite positive. I think crude will rise moderately.
DeleteHow long to pink cycle high?
ReplyDeleteI'm looking to exit the position very soon. Best to be nimble here I think. Choppiness is likely to persist.
ReplyDeleteThere will be spots to short, but need to be very selective and wait for the best entries to develop. Overall the Cycle shows a rising market but choppy.
45 point rise today for SPX from the low of the day!
ReplyDeleteSCMarch 12, 2015 at 8:13 AM
"SPX dipped a fair bit, but the dip for XIV has been minimal. When that happens a strong rally can be expected, and soon. It is definitely showing relative strength.
I think this dip either finished yesterday or tomorrow. Next week, I think it will surprise people how fast the market rises."
Looking to exit soon though...
ReplyDeletePick up UVXY after exit XIV? What range for UVXY? 14 and below?
ReplyDeleteYes, UVXY starting to look interesting. I'm going to examine prices, looking for some short term developments.
ReplyDeleteXiv still $38 target?
ReplyDeleteYes
ReplyDeletesc, this time from 2100 to 2040, uvxy did not move at all. if you are expecting uvxy at 14 , how high will it go in next move
ReplyDeleteUVXY should run to $18 late April/early May. Still need to wait for it to hit a low first though a little lower.
DeleteIt looks like this is your move, commodity sector revival and dollar drift lower would seem to provide a nice blow off top to your 2150....good call and patience as the chop is tricky....reminds me of 07-08 market
ReplyDeleteI dont know but to me it looks like 2nd yellow arrow. Although. Sc is expecting. 2150. March 26 to april 6. Is puertz crash window
ReplyDeleteI know using TA isn't a good idea with ETF's but XIV formed a pin bar reversal right at the upper trend line. Along with the VIX hitting the lower trend line support today. XIV - http://screencast.com/t/2sAnOkyU
ReplyDeleteHey SC
ReplyDeletehave your target changed? your UVXY target will be reach soon at this rate before your XIV target.
Cheers!
SC, some thing weird going on with uvxy, vxx, and tvix, market going down, they hardly moved. what is causing this. also I know you are holding still uvxy from 62, do you think you will be able to get out from that. everyone is expecting big decline in sept and oct, so can it happen sooner
ReplyDeleteI figured UVXY would bounce at $14 and it did, but it does not look attractive currently for anything other than a brief bounce.
DeleteOnce the Cycle matures then, yes, a large move will be due to occur.
SCFebruary 25, 2015 at 10:03 AM
"Looking to take profits in XIV soon, and enter UVXY. Around $14 looks like a good spot."
The next week probably will be bumpy and head a bit lower, but after that the market looks very strong to me again. I'm raising my XIV target to $40 for April, and expecting a push to 2150 SPX starting in about a week.
ReplyDeleteVIX should churn for a week here, might briefly pop above 18 and then collapse to 12.
If you are waiting for XIV $40 then your UVXY target is way off! Should be $10 instead of $14
ReplyDeleteJust figured it would bounce at $14 and it did, but yes, expecting much lower for UVXY.
ReplyDeleteThese little $4 pops are ok to catch for UVXY, but much more interesting and worthwhile are the 50 to 100% spikes, and ultimately the 700 to 1,000% trends such as we saw in 2011.
ReplyDeleteso from uvxy of 10 where do u think it will bounce to
ReplyDelete$17 or so.
DeleteYes but with the rate of decay the gains are much smaller. 1000% from $50 is $500 (if we started last Oct) vs $30-$300 from Feb vs $10-$100 from ...Apr? May?
ReplyDeleteYes, that's true. Which is why I'll stay with XIV until the Cycles mature and UVXY is ready to hold for a long period.
DeleteXIV also decaying . Looks like carving out right shoulder of massive multi-year H&S patten with $24 as the neckline....once that goes then the target is $7 with UVXY around $100-200 depending on the decay from whence the rise starts.
ReplyDeleteSo has pink arrow finished yet?
ReplyDeletehttp://www.finviz.com/quote.ashx?t=UVXY&ty=c&ta=1&p=d&b=1
ReplyDeletehttp://www.finviz.com/quote.ashx?t=TVIX&ty=c&ta=1&p=d&b=1
http://www.finviz.com/quote.ashx?t=TZA&ty=c&ta=1&p=d&b=1
all the reverse etfs are showing falling wedge, bullish formations
Possibly Payday, if so then S&P would dip to test around 2,000 in a week to 10 days, and then run to 2,300.
ReplyDeleteSpx 2300 would put XIV where? 50's? 60's?
ReplyDeleteYes, 50's at least.
DeleteNew Cycle update posted!
ReplyDelete