Similarly, SVXY has fallen from grace. SVXY has backtested fork support exactly. Longterm trendline resistance is located at approximately $19.
Weekly Chart
Thursday, February 15, 2018
SVXY - Initiating Coverage
As expected the parabolic rise in XIV identified early in 2017 collapsed with a bottomless decline. The fund will be delisted on February 20, 2018. The END.
Similarly, SVXY has fallen from grace. SVXY has backtested fork support exactly. Longterm trendline resistance is located at approximately $19.
Weekly Chart
Similarly, SVXY has fallen from grace. SVXY has backtested fork support exactly. Longterm trendline resistance is located at approximately $19.
Weekly Chart
Thursday, February 8, 2018
$SPX - Rollercoaster Ride to Continue - Massive Rally Approaching
SPX plunged off major resistance this week. However, the channel is intact, and still mildly bullish. A new slightly higher high is likely to materialize according to the model.
The model shows that the topping process will be characterized by whipsaws and chop.
Daily Chart
The model shows that the topping process will be characterized by whipsaws and chop.
Daily Chart
Wednesday, February 7, 2018
UVXY - Measured Move Achieved - Volatility to Continue!
The measured move targeted in January 9th analysis has been achieved. Price touched the orange fork resistance exactly and was rejected.
The markets have entered the whipsaw phase.
UVXY should decline next week into Friday, and spike again to test the orange resistance later this month. Volatility to continue, and increase in the following months.
2day Chart
Before:
January 9th, 2018 analysis:
"Not much room for downside on this chart for UVXY. Price slowly grinding along support with time. Spike up likely within a few weeks."
2day Chart
The markets have entered the whipsaw phase.
UVXY should decline next week into Friday, and spike again to test the orange resistance later this month. Volatility to continue, and increase in the following months.
2day Chart
Before:
January 9th, 2018 analysis:
"Not much room for downside on this chart for UVXY. Price slowly grinding along support with time. Spike up likely within a few weeks."
2day Chart
Thursday, February 1, 2018
XIV - Decline has Commenced - Update
XIV plunged and came close to the initial downside target, and has bounced back to the orange trendline.
Notice that XIV bounced at the blue trendline from August. XIV is extremely weak and the blue trendline will not hold.
The orange line may provide resistance or XIV may be able to overshoot it. In any case the largest plunge is yet to come...
2day Chart
Before:
This model shows similarity to XIV. Notice the sudden drop with no warning, and continuation lower:
Notice that XIV bounced at the blue trendline from August. XIV is extremely weak and the blue trendline will not hold.
The orange line may provide resistance or XIV may be able to overshoot it. In any case the largest plunge is yet to come...
2day Chart
Before:
This model shows similarity to XIV. Notice the sudden drop with no warning, and continuation lower:
Tuesday, January 9, 2018
XIV - Reversion to the Mean
Mean reversion is the theory suggesting that prices and returns eventually move back toward the mean or average.
XIV has overheated and a reversion to the mean is likely in the months ahead.
When prices become this stretched from the normal, the move tends to be quite violent with a panic decline.
2day Chart
This model shows similarity to XIV. Notice the sudden drop with no warning, and continuation lower:
Not much room for downside on this chart for UVXY. Price slowly grinding along support with time. Spike up likely within a few weeks.
2day Chart
XIV has overheated and a reversion to the mean is likely in the months ahead.
When prices become this stretched from the normal, the move tends to be quite violent with a panic decline.
2day Chart
This model shows similarity to XIV. Notice the sudden drop with no warning, and continuation lower:
Not much room for downside on this chart for UVXY. Price slowly grinding along support with time. Spike up likely within a few weeks.
2day Chart
Tuesday, December 26, 2017
Gold - Bitcoin Signals Big Trouble for Gold
Bitcoin spells big trouble ahead for Gold. The headlines are everywhere "Bitcoin - the new digital Gold".
Of course Bitcoin will not replace Gold. Gold has the most history of any asset. However, Gold is out of favour, and as Bitcoin builds momentum in a few years time people may actually believe that Bitcoin has replaced Gold!
Gold has been forming a classic Bear Flag over the last two years, and it is nearly complete. The large size of the flag and measured moves are indicative of a large leg down coming in this bear market.
Weekly Chart
Of course Bitcoin will not replace Gold. Gold has the most history of any asset. However, Gold is out of favour, and as Bitcoin builds momentum in a few years time people may actually believe that Bitcoin has replaced Gold!
Gold has been forming a classic Bear Flag over the last two years, and it is nearly complete. The large size of the flag and measured moves are indicative of a large leg down coming in this bear market.
Weekly Chart
Monday, November 20, 2017
XIV - Parabolic Move Ending at Resistance!
The parabolic move for XIV is almost over. Price is reaching into overthrow territory. It may become grossly overbought by reaching the orange trendline before turning down.
The "Trump trade" is coming to it's end. The parabola, of course, will end very badly.
Daily Chart
The "Trump trade" is coming to it's end. The parabola, of course, will end very badly.
Daily Chart
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