Click here for Signal Trades spreadsheet. Updates 1:31 PM ET - Tuesday UVX and VIX futures have turned bearish Last night we share with you VX 30-minute chart, with its pattern suggesting caution for bulls. Today as of this writing, UVXY 15 minute chart has turned officially bearish. We can see in the chart below UVXY has formed a base around 23. Its 20 EMA blue line is about to cross above 200 EMA green line. This is a bearish setup for equity. However, NQ and SOXL charts are still bullish. So it's not time to enter into bear positions via SQQQ SOXS yet. But bulls should be cautious and don't go hog wild here. TNA 30-minute chart shows it at cross road. If its 20 EMA blue line doesn't cross back up above its 200 EMA green line soon, then TNA will be officially bearish. Updates 2:30 AM ET - Tuesday Upcoming key events NQ remains bullish for now In NQ 30-minute chart below, its 200 EMA green line is trending up steadily. Its 20 EMA blue line has not succeeded in dropping below it. Conditions are still bullish for NQ. But VIX futures are suggesting caution VX 30-minute chart below shows a 200 EMA green line steadily dropping also. But its 20 EMA blue line is starting to rise up similar to how it did ahead of FOMC. Right now, this does not seem to be an outright bearish reversal yet. However, if VX 20 EMA blue line loops quickly below 18 from here, and then turns right back up and crosses above the 200 EMA green line, rising higher than 18.15, then it is a serious signal that volatility is rising again. SOXS Since VX has now hinted at possible rising volatility, we want to analyze SOXS chart to see if it concurs. SOXS 30-minute chart below shows a bunched up flat 20 EMA blue line and 50 EMA red line. By our count, this is SOXS 2nd weak attempt at rising above its 200 EMA green line. It still needs more work to truly turn bearish. Keep an on SOXS 20 EMA blue line (30-min chart). If it drops below 22.4, then turns right back up, that will be counted as SOXS 3rd attempt to rise. And this process will also form a W bottom pattern which is a strong hint that SOXS will likely rise a lot more. This will be bearish for SOXL. TZA Similar to SOXS, TZA 30-minute chart below shows it has made a 2nd attempt to rise. If TZA 20 EMA blue line:
Our personal trade plan In light of the strong possibility of NQ SOXL TNA having a decent partial recovery by December, we are not going to sell our SOXL positions just yet. We will most likely sell them when SOXL reaches our breakeven price of 46.5. Still this is subject to change. For now we'll just continue to monitor VIX VX UVXY and SOXS. We'll enter SOXS if the bearish setup described above appears. 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.
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