Updates for Wednesday July 24, 2024

Click here for Signal Trades spreadsheet.

​​Updates 4 PM ET - Wednesday
Buy order filled to scale in more
Buy order for 1/4 position of SOXL at 44.85 got filled as planned.

Updates 2:46 PM ET - Wednesday
Setup very similar to last July
Current charts show a lot similarities to last July Level 3 dip.  What started out as a Level 2 dip on July 19 2023 morphed into a Level 3 dip that lasted until August 25, about a month long process.

The current Level 2 dip that started July 11 is morphing into a Level 3 dip in scope, but not necessarily in duration.  This drop has been straight down rather than slowly coiling down.   What comes straight down tend to go up sharply.

There are some key levels coming up

• VIX resistance at 18
• NQ support at 19179
• SOXL support at 42
• TNA support at 44.22

It's uncomfortable to scale in long when VIX appears to be surging and equities are dropping.  However, we don't recommend starting bear positions at this point. In general, we want to be a bull at the top of the VIX spike with everyone is shouting "volmageddon", and a bear when VIX is basing and everyone is sneering "VIX is dead".
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Updates 1:50 AM ET - Wednesday
​Upcoming key events

​VIX VVIX UVXY still in top formation process
Is this Level 2 dip done yet?  The biggest clue is VIX VVIX UVXY top formation process.  As long as they are forming lower high or same high tops, they don't provide support for the bears.  No bear party can really get going without these three showing up and continuing to surge up.

VVIX 4-hour chart below shows a top formation.   On Wednesday, look for:

• VVIX may surge all the way back to 101.71, but more likely will form a lower high top around 94.
• VIX may surge all the way back up to 17.19, but more likely will form a lower high top around 16.
• UVXY may surge all the way back up to 25.89, but more likely will form a lower high top around 24.8

NQ

• NQ is likely to test 19600 for support again. 
• As long as this support holds, NQ is capable of rising back up to R1 resistance at 20200 after PCE.
• R2 resistance is at 20500.  If NQ gets up to this level and VIX VVIX UVXY all start to base to rise at that point, then NQ is unlikely to rise higher.  This lower high top combined with rising volatility will be the launch of Level 3 dip.

SOXL

• SOXL is likely to test 46.76 for support again. 
• As long as this support holds, SOXL is capable of rising back up to R1 resistance at 55.19 after PCE.
• R2 resistance is at 62.  If SOXL gets up to this level and VIX VVIX UVXY all start to base to rise at that point, then SOXL is unlikely to rise higher.  This lower high top combined with rising volatility will be the launch of Level 3 dip.

We are now fully scaled into one SOXL position with another 1/4 position to add.  We will try to add this at the key support zone of 46.8.   Click here for Signal Trades spreadsheet.

TNA

• TNA travels its own path, not moving in sync with VIX VVIX UVXY.  But since some of our members trade TNA, we're going to try to provide some S/R levels based on TNA charts.
• TNA is very likely to drop starting Wednesday, and is likely to retest S1 support at 45.8.
• If S1 does not provide enough support, then S2 comes into play at 44.22
• Finding sufficient buyers at support can bring TNA back up to retest recent high at 55.44

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.​

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