Updates for Thursday 5/26/22

Click here for Signal Trades spreadsheet.

Updates 9:26 AM - Thursday 5/26/22

GDP negative but...
GDP contracted at -1.5% according to latest report, but market reaction is muted.   This is a bullish sign, confirming our "Fully Bullish" volatility signal.

There are many other bullish confirmations popping up, which we will discuss in more details in the weekend report.

We will update the buy targets shortly.

Updates 1:30 AM - Thursday 5/26/22

Short-term volatility signal: "Fully Bullish"
...but as we explained yesterday, between now and 6/15, stock indices are likely to behave like they did between 2/24 and 3/15.   They are likely to bounce in a wide range.   For ES that range is likely to be between 3875 and 4100.

After the GDP report at 8:30 AM ET, we'll be monitoring ES for the possibility of it dipping back to 3875.   This is a strong support level, and if ES can find enough buyers there, ES can climb up towards 4100 next week.

(We trade SPXL but we prefer to track ES which is S&P futures since it trades 22 hours and provides more intraday data points on charts.)
​
Volatility is dropping
... and SVXY SVIX (short VIX ETFs) are rising as a result.  Post GDP report, look for a quick dip to test SVXY SVIX 5/24 low.  Strong support there can propel SVXY SVIX back up to 5/17 high next week.
(NOTE: We trade SVIX because it has better leverage than SVXY.   But we track SVXY chart because it has more data.)

(For more information on $VIX $VVIX $VXN $RVX, click here.)

Trade plan
We plan on trading a Multi-day Bull position with SVIX and an Intraday Bull position with SPXL.   

​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.