We trade 3x ETFs such as TQQQ TNA SOXL LABU UVXY using proprietary analysis of volatility.
Updates 1:30 AM EST - Tuesday 12/21/21
Volatility: $VVIX $VIX $VXN $RVX
Read more about $VIX $VXN $RVX $VVIX and the effects of options and hedging on the market here.
Recall our system's basic rule: same/lower high spike for all volatility charts simultaneously constitute a "Fully Bullish" signal. And that is what we still got as a pattern for $VVIX $VIX $VXN $RVX charts. Despite the fact that Monday's high is higher than the two previous days, it is technically lower than the key spike on 12/3.
Hedging by Traders: Put/Call Ratio
The P/C ratio 20-hour EMA has dropped below its 200-hour EMA level, reflecting short-term drop in the demands for puts by traders and fund managers. Again, the P/C ratio pattern signals "Fully Bullish" for now.
Hedging by Dealers
Here are the updated key price levels below which dealer hedging swings from "dampening volatility" to "fueling volatility". Currently $SPX $NDX are below the key levels, and IWM is just barely above it. So buckle up for some more big price swings, up and down.
Market Breadth: Advance-Decline Net Issues
NYSE, Nasdaq and S&P small caps had been forming big W bottoms since 12/1. The bullish pattern is still intact, though barely.
The Dark Pool Index shows that silent money has been buying $SPX since 11/18. But it dropped as of 12/20. This has been a long run, so let's see how this may affect the regular market.
Short-term Key Levels and Trade Plan
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Current trade record here.
The information presented here is our own personal opinion. Consider it as food for thought. We are not offering financial advice. We are not promoting any financial products. We are not registered financial advisers or licensed brokers. We make no guarantee that anything will unfold according to our projections. You are proceeding at your own risk if you follow our suggestions.