Updates for Friday February 9, 2024

• We trade stock market swings based on VIX, via SVIX UVXY TQQQ TNA and more.
• Current trade record here. ​
• Subscribe to get our daily analysis, trade plans and real-time entries/exits.​

​
Updates 9:11 AM ET - Monday

Strong Bull mode continued overnight
ES NQ RTY all shot up overnight, with ES tagging 5040 as projected.   

We plan to continue holding the two runner positions TNA and SOXL and will monitor for intraday pullback to enter SOXL for the Quick Profit trade.  It may or may not come, but it has certainly been a decent week for the bulls.

Updates 12:45 AM ET - Friday

​Upcoming key events
Read more economic analysis here.

Big picture: bull market; short-term: strong buying momentum returns
Technically ES NQ RTY are back in Strong Bull mode, and this may continue until OpEx on Friday Feb 16.

So what could go wrong to wreck this party?  VIX.
We will be monitoring for these patterns that shows when volatility is most likely going to rise.

• VIX stays above 12.8 and all of its EMA lines start rising (1-hour chart).
• UVXY forms a flat base of support at 7 and then starts rising.

If VIX starts to rise from here, then the signal for the Strong Bull mode has failed.  And a failed signal will send the market in the opposite direction quickly.  In other words, instead of a Strong Bull, we'll get a very Weak Bull with lots of selling that can lead to a substantial dip.  But until these patterns show up, the Strong Bull is in charge.

Key S/R levels
NQ levels and pattern have not changed. NQ has broken out above resistance at 17775.  While it may quickly dip to retest 17725 on Friday, NQ will march up and will reach 18000 soon.  NQ may even reach 18200 by OpEx.  Short-term support lies at 17475.

ES levels and pattern have not changed.  ES has broken out above resistance at 5000.  While it may quickly dip to retest 5000 on Thursday, ES will march up and will reach 5040 soon.  ES may even reach 5075 by OpEx.  Short-term support lies at 4980.

RTY has formed a beautiful W bottom between Monday and Thursday this week to retest 1925 again.  We can see this clearly on RTY hourly chart. RTY broke out of this bottom on Thursday morning, and is likely to rise up to 2060 possibly by OpEx.  

Our personal trade plan
1. Bull Quick Profit SOXL: On Thursday Feb 8, we did an intraday tactical trade and collected a small profit on half position of SOXL.  We plan to repeat this on Friday if we get a bullish setup to re-enter SOXL.

2. Bull Runner SOXL: On Wednesday Feb 7, we entered a half position of SOXLwhen NQ started breaking out. We plan to hold this as a runner to capture NQ rising to 18200. 

3. Bull Runner TNA: On Thursday Feb 8, we re-entered a half position of TNA when RTY formed a big W bottom on its hourly chart.  We plan to hold this as a runner to capture RTY rising to 2060. 

Note that if we see any of the VIX or UVXY pattern discussed above, we'll manually exit all bull positions.

Click here for Signal Trades spreadsheet.

Disclaimer
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 trades.​​