Updates for Monday 9/21/20

Click here for current Signal Trades.

Updates 2:00 PM EST - Monday 9/21/20

​Short-term:  bearish
Market is still in condition #4 "Strong bearish headwinds for stocks".  

• Market breadth:   Net Advance-Decline Issues are very negative for NYSE and Nasdaq stocks.
• $VIX $VXN 200-hour EMA are still rising.  
• $VIX $is likely to finish anchoring in the zone between 27.4 and 28.   Then it is likely to pivot and rise.   
• $VXN $is likely to finish anchoring in the zone between 36 and 36.5.   Then it is likely to pivot and rise.

Monitor for upward reversals in these $VIX $VXN zones.  These are low-risk setups to re-enter UVXY and SQQQ.

Updates 9:53 AM EST - Monday 9/21/20

Bearishness is accelerating 

• No quick up swing for $SPX $NDX IWM.
• Bearishness is accelerating along with selling for $SPX $NDX IWM.

Updates 9:31 AM EST - Monday 9/21/20

Just a quick swing up, then likely a bigger drop
We just want to clarify that we expect $SPX $NDX IWM to do a quick up swing and then they are likely to drop again to lower levels in their down channels.

This is because we expect $VIX $VXN to anchor in the zones described below and then rise up to resume the highly bearish condition.   

Please review the condition #4 "Strong bearish headwinds for stocks" in the table below.   That's where $VIX $VXN are heading.

 
Updates 9:20 AM EST - Monday 9/21/20

$VIX $VXN anchoring to rise
Pre-market $VIX data tells us that $VIX is forming the "anchor to rise".   It anchored at its 200-hour EMA on Friday 9/18, and it gapped up during the early hours of today.

This morning we are monitoring for:

• $VIX to re-test the zone between 26.5 and 27.5 one more time before taking off to higher level.
• $VXN to retest the zone between 35.5 to 36.
• $SPX $NDX to do a quick up swing within their channels.   
• IWM to rise out of its green support zone by a small amount.

$VIX $VXN need to drop down and anchor a bit more before they will take off.  But $VIX $VXN are basically transitioning to go back to condition #4 "Strong bearish headwinds for stocks".

Click here for current Signal Trades.
​
​Disclaimer
The information presented here is our own personal opinion.  It is intended to supplement your own research and trading systems.  Consider it as food for thought. We are not registered financial advisers or licensed brokers.  We make no guarantee that anything will unfold according to our projections. While we offer scenarios for you to consider in your trade planning, know that you are proceeding at your own risk if you follow our suggestions.  

Note that we trade highly risky 3x leveraged ETFs.  You may end up losing a lot of money with them. They suit our portfolio, but they may not be appropriate for you.   Please read more about them before trading them.

Proshares UltraPro and UltraPro Short ETFs
Direxion Leveraged and Inverse ETFs
Why 3x ETFs like TQQQ lose money over the long term
The risks of investing in inverse ETFs
Simple explanations of contango and backwardation

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