We trade 3x ETFs such as TQQQ TNA SOXL LABU using proprietary analysis of volatility.
Updates 1:30 AM EST - Wednesday 7/14/21
$VIX $VXN $RVX
All 3 volatility charts are showing the same pattern. $VIX $VXN $RVX are poised to rise from here, and very unlikely to drop below the orange lines at the bottom of the charts.
The exact path they will take to spike up to the green lines that we've been highlighting is not easy to predict. However, you can look for their 20-day EMA blue line to rise up, get close to, and eventually cross over the 50-day EMA red line. While this pattern unfolds, the odds of $VIX $VXN $RVX spiking are high.
Charts are available in full post for members.
$SPX $NDX IWM
Market internals continue to deteriorate, especially for Nasdaq stocks. RSI is diverging bearishly from price on all 3 charts. However, the tricky part about trading right now is that $SPX $NDX IWM have been ignoring these bearish messages. We witnessed on Tuesday the intraday price surge, especially for $NDX. For a while it kept going up, up and away. But that is likely to be a bull trap.
When $VIX $VXN $RVX really spike, and $SPX $NDX IWM really drop, they are likely to go all the way to their green support zones shown below.
Table of Support & Resistance Zones
All the green support zones have been updated.
Table is available in full post for members.
Click here for Signal Trades spreadsheet.
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