Click here for current Signal Trades. ​

Updates 1:08 PM EST- Monday 2/1/21

Transitioning to rise again
$VIX $VXN have formed clear tops for now.   There's no indication of serious fear or panic.   Not in the short term anyway.

$NDX $SPX IWM have penetrated the orange resistance zones.   Now we need to monitor for these possible scenarios:

Quick spiky tops:   $NDX $SPX IWM spike up quickly and sharply to the top of their orange resistance zones.  That is likely a setup for a drop to a lower level, most likely the green support zones.

Retest lows to form W bottom:   $NDX $SPX IWM drop down to re-test the zones between Friday low and Monday low.   If this re-test is successful, it would form a W bottom and set the stage for the next leg up, rising back to the top of the yellow channels.   

We are going to wait for the W bottom setup as the entry point to re-enter Quick Bull and Big Bull positions.   Target entries will be TQQQ TNA SOXL.

Updates 12:55 AM EST- Monday 2/1/21

Perspective
Monday 2/1/21 is likely to be a major pivot day of some sort.   It could usher in a crash (like 2/20/20 last year).   Or it could be the day when Wall Street Bets army will buy everything and stocks will surge 10x in one day.

OK may be not.

But there is no doubt that major changes are happening on Wall Street.   And these changes are sowing some amount of chaos.   Major market players are nervous, primarily because they are unsure how to position themselves in this unprecedented and unpredictable environment.   According to WSJ on 1/30/21:

"Indeed hedge funds set near-daily records of various sorts last week for how much they pulled back their exposure to the U.S. stock market by covering their shorts and selling out of their wagers on companies, according to client notes from Morgan Stanley and Goldman Sachs Group Inc.   On Wednesday, this type of so-called degrossing contributed to the largest one-day drop in funds’ use of leverage on record, a Goldman note said."

A bull can argue that this was peak level of degrossing / deleveraging.   And now market conditions are prime for a snap-back rally.   

A bear on the other hand may argue that there are rising systemic risks  that can cause a flash crash or an outright market collapse.   

We've put together a lengthy explanation for the rising systemic risks.   Please take a look here.   

Traders need to stay nimble with a  flexible mindset with regard to short-term market directions.  There is more under-the-hood stuff unfolding.   Sooner or later, the buy/sell forces will reveal themselves in the charts.   And that's when we can move in.

Market Internals
Market internal messages have gotten much more bearish.

​$VIX 
$VIX weekly chart is forming a worrisome bearish pattern.   To understand this pattern, it helps to go back and look at $VIX weekly charts from the crash of 2008.   

Observe how $VIX stayed above its 200-week EMA green line starting from mid-year 2007.   $VIX then anchored at the 200-week EMA green line twice before shooting up like a geyser in August 2008.   That was the start of the 2008 crash.

In $VIX current weekly chart, notice how $VIX has been staying above its 200-week EMA green line since 2/20/20.   It has been dropping towards its 200-week EMA green line, and anchored there in December 2020.   Since then $VIX has been grinding steadily upward, and surged up substantially last week.   

The key signal to monitor for is $VIX 20-week EMA blue line rising above its 50-week EMA red line.   On the daily chart, it would show up as $VIX 20-day and 50-day EMA lines both crossing above their 200-day EMA line.   The same applies for $VXN weekly and daily charts.  

These patterns would be quite bearish and can give us a heads-up that a crash is coming.

However, if $VIX 20-week EMA blue line starts to drop quickly, then the bulls have a chance at dominating the market again.   

​$NDX $SPX IWM
There is a high probability that $NDX $SPX IWM will need to work their ways down to their green support zones to find enough buyers to resume the climb up.

The green support zones are key short-term support levels, sitting at the bottom of the yellow up channels.   A bounce from here is healthy for the longevity of the bull market.   A drop below this zone will be very bearish.

​Signal Trades
We will be monitoring $VIX UVXY as well as SPY QQQ IWM closely pre-market tomorrow for indications of s/t price directions.   

Click here for recent 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.  

Why 3x ETFs like TQQQ lose money over the long term
The risks of investing in inverse ETFs

Updates 2:34 PM EST- Friday 1/29/21

Turning bearish
$VIX $VXN didn't gap up hugely this morning, so the immediate crash scenario we outlined last night didn't arrive.   At least not yet.

But $SPX $NDX IWM attempts to bounce have failed so far today.   $VIX $VXN have marched upward, along with UVXY SQQQ TZA.   $VIX $VXN may gap up on Monday.

We have exited Quick Bull SOXL in Signal Trades, and are looking to enter UVXY and SQQQ on a dip.   

Updates 1:45 AM EST- Friday 1/29/21

Perspective
There is now a real fight in the stock market, not unlike a WWF match.  In one corner, we have the traditional suits from financial institutions and regulators.   In the other corner, we have the YOLO peasants of r/WallStreetBets and Robinhood account holders.  

There's a sense of major annoyance and a bit of a panic on Wall Street.   Who are these troublesome peasants and why won't they back down?   The longer r/WallStreetBets continue to stir up trouble, the more vulnerable the suits will be.   

Already there are rumors of liquidity problems experienced by Robinhood.   Certainly Melvin Capital needed Point72 and Citadel to throw them a lifeline.  So the house of cards may be teetering on the edge.

It is difficult to tell how this will unfold because there is absolutely no precedent.  The peasants have clearly touched a nerve with the suits.   Into this mix we also have other hedge funds and billionaires (see Chamath, Elon, Tyler, Cameron, Blackrock, etc.) using the peasants as pawns in a massive money chess game.

It is actually a wonder that the market is still functioning.

This is a lengthy way of saying be careful out there.   This market is definitely on edge, searching for stability.   No one can predict how this will unfold precisely.

Market Internals
Market internal messages continue to stay bearish.

$VIX $VXN
Watch out for $VIX $VXN gapping up above the highs of Wednesday 1/27.   If they gap up substantially above these levels, $SPX $NDX IWM may be heading to a crash.​

​Table of Support & Resistance Zones
The S/R table remains the same as yesterday.

Updates 2:54 PM EST- Thursday 1/28/21

Not done thrashing yet
$VIX $VXN charts are unlikely to surge above Wednesday's highs.   So $NDX $SPX IWM are unlikely to experience a crash.

However, $VIX $VXN charts show that they are likely to spike up one more time before completing a short-term top.   

So the thrashing is likely to continue for a while longer.    The best strategy right now is day trade or stand aside.   We are choosing stand aside.

Updates 9:24 AM EST- Thursday 1/28/21

Stand Aside 

• Futures (ES NQ RTY) found support and recovered towards early this morning.
• VIX and UVXY dropped pre-market more than the allowable range for us.

  
So we manually exited UVXY pre-market and standing aside for now until there is clearer resolution.

Updates 12:36 AM EST- Thursday 1/28/21

Summary
One day makes a huge difference.  

$VIX $VXN actions of Wednesday show that $SPX $NDX IWM will most likely experience a big drop.   This big drop can take them down to the bottom of their yellow up channels.

Beware that if $VIX gaps up above 38, and $VXN gaps up above 40 on Thursday, $SPX $NDX IWM may experience something akin to a crash.

Market Internals
Market internal messages have turned bearish.

$VIX $VXN
The bearish $VIX $VXN patterns that we have been sharing with you unfolded today.   See more annotations below.

The most bearish signal is if $VIX gaps up above 38 and $VXN gaps up above 40 on Thursday.   Like a rocket being launched, $VIX $VXN will then have the potential momentum to shoot up a lot higher.​

$NDX $SPX IWM
We had thought that the bullish momentum in $NDX $SPX IWM would override the short-term rise in $VIX $VXN.   However, since $VIX $VXN surged up so strongly in one day, $NDX $SPX IWM are dropping in response. 

There is a high probability that $NDX $SPX IWM will drop lower.   There is also a high probability that $NDX $SPX IWM will find support in the new green zones at the bottom of their up channels.

​However, watch out for the highly bearish scenario where $NDX $SPX IWM gap down below the bottom of their yellow up channels on Thursday.   That would most likely be the start of a crash.​

Perspective 
There are multiple theories as to why the market is selling.   But it is unlikely due to poor earnings.  Recent highly positive earnings reports from big names like GS, MSFT and AAPL mean that the economy is not collapsing.

But as you know the revolutionary peasants of r/WallStreetBets have been ganging up on certain hedge funds by squeezing their short bets.   Hard.   And these hedge funds have had to buy at a much higher price to cover these short bets.   So one theory is that they may be running into liquidity problem.   This means these hedge funds may have to sell good stocks like AAPL in order to buy back lousy stocks like GME.   

The net effect is that we may suddenly see a whole lot of selling of a whole lot of stocks.

Our $VIX $VXN analysis picked up on the bearish vibes and the waning appetite for risks as early as last week.   We've been saying watch out for these bearish $VIX $VXN patterns because they may arrive soon.

They did today, and they may become worse.   We just don't know for sure the "why" of it.   We just know the "what" and "when".

Signal Trades
A member asked about our UVXY entry today.   Here's what we shared.

Yes, we buy/sell in our own account and then post the updates and the alerts.

We were hoping UVXY would test the low one more time (perhaps around 10.5) before it takes off some more.  But when we closely monitored UVXY VIX VXN after FOMC, it was clear that they were all going up.  

So we entered at UVXY @12.98 (2:31PM stocktwits alert)
Then we exited UVXY @13.08 as it was forming a topping pattern (3:22 PM stocktwits alert)
Then we re-entered UVXY @13.47 (3:28PM stocktwits alert)

We are holding UVXY overnight as we think it can go to 18 in the short term.

In general, we try to explain the big picture in our nightly analysis, and provide our members with chart actions to monitor for so that members can make their own trading decisions.  We share our trades in Signal Trades to further illustrate where we think market is heading and how to capture the rides.

The Buy Target list is just that.   We stalk certain entry points.   But they don't always come through, and sometimes we just have to suddenly jump in at a price higher than our Buy Target list.   
...

Futures are down right now, and UVXY shot up after hours to over 15.  We are holding UVXY and expect that it will go up some more tomorrow Thursday.   We'll keep you updated.   See Signal Trades for current and recent 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.  

Why 3x ETFs like TQQQ lose money over the long term
The risks of investing in inverse ETFs

Updates 11:51 AM EST- Wednesday 1/27/21

Shallow dip >> Big Drop
$VIX $VXN gapped up substantially this morning.   And they have stay elevated.   The bearish $VIX $VXN patterns shown below (see post at 1:35 AM) are starting to materialize.   

Both NYSE and Nasdaq A/D net issues are highly negative this morning, though they are rising a bit.   This is a bearish start of the day.

As a result of $VIX $VXN gapping up, $SPX $NDX IWM dropped this morning.   $SPX IWM have anchored in their green support zones for now.   $NDX anchored the 50 EMA red line on its 2-hour chart.   So the shallow dip has arrived early.

The fact that all this is happening before FOMC announcement today is disturbing.  It's worrisome for the bulls.   The current shallow dip in price may turn into a bigger drop after FOMC today.   We need to stay alert for this possibility.

We are holding off any entries until after FOMC.   Even though we don't have a reason to attach to it yet, our $VIX $VXN signal system is picking up bearish vibes.


Updates 1:35 AM EST- Wednesday 1/27/21

Summary

• There is no crash signal on the horizon right now.
• There is a high probability that $VIX $VXN will rise higher in the short term.
• $SPX $NDX IWM are likely to rise up and penetrate their resistance zones this week.

Market Internals
Market internal messages are still mixed.

$VIX $VXN
$VIX $VXN 2-hour charts below show contracted candles from Monday clustering just above the 200 EMA green line.   

It is a bearish scenario if $VIX $VXN candles continue to stay up at this level, or rise higher.  The truly bearish pattern to monitor for is shown on the charts below.

While there is no guarantee that these bearish patterns will unfold, traders should monitor for this possibility.​

​Table of Support & Resistance Zones
The S/R table has not changed.

What this tells us that the current market mood is very bullish.  There is this sense of invincibility from traders.    This supremely high level of confidence will prompt many traders to continue buying random stocks, and providing more fuel for the bull market to continue.

​If you choose to trade these hot stocks, we recommend using basic day trading techniques.   

• Focus on chart patterns, especially intraday charts.   You need to know how to read breakout chart patterns.
• Trade very small positions.   
• Use tight stops.
• Don't get hung up on nailing tops or bottoms.   
• Buy the dip, sell the rip, and get out quickly.
• These are not long-term investments.   
• Don't fall in love with them.   Don't rationalize.   
• Be willing to take a loss if you are wrong.
• Keep in mind that these hot stocks can suddenly reverse very quickly.
• Don't buy into the hype that r/WallStreetBets traders possess invincible power.

​
Signal Trades
We are targeting to re-enter TNA and possibly TQQQ on Wednesday, preferably on a reasonable intraday pullback.   

We are also looking to enter UVXY for a quick trade if it revisits the recent low.

Be patient and choosy in this market.   Wait to buy the dip.   Buying the dip means you have price on your side, and you have lowered the risks a bit more.

See Signal Trades for current and recent trades.   We will post target buy price and new positions if any.

​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.  

Why 3x ETFs like TQQQ lose money over the long term
The risks of investing in inverse ETFs

Click here for current Signal Trades. ​

​$VIX $VXN
We've annotated $VIX $VXN daily charts below to show their bearish setups.   

The thing to watch out for is the 20-day EMA blue line crossing above the 50-day EMA red line.  That could lead to a big surge in volatility, and a big drop for $SPX $NDX IWM.   

By the way, when we say "big drop", we are not talking about a full-blown panicky crash for $SPX $NDX IWM.   We don't have that signal yet.   

$NDX $SPX IWM
$NDX $SPX IWM formed an intraday topping pattern on Monday.  However, there is still a good chance that $NDX $SPX IWM will stretch themselves upward a bit more, reaching higher into their respective orange resistance zones.

If this happens, then the odds are high that they will drop from these high levels down into a lower part of their channels.   The first level of support is at the green zone.   

If $VIX $VXN surge up higher above their 200-day EMA, $NDX $SPX IWM may experience a bigger drop that can bring them all the way down to their 2nd support zones shown below.

Note however that since $VIX $VXN are not showing crash signals, $NDX $SPX IWM up channels are likely to remain intact even with these drops.​

Signal Trades
When $VIX $VXN gapped up on Monday morning, so did UVXY.   So we traded a Quick Bear UVXY position.   We should have locked in our profit quickly instead of waiting to see how high UVXY would go.   In the end, we exited with a small gain.

The lesson learned here is that no matter how good it feels and how tempting it is to ride for as long as possible while price is surging, always be thinking in terms of booked profit.   

Did you know that if you simply target a 10% gain per month for your trading capital, and roll your monthly 10% profit into next month's capital, it is mathematically possible to gain 285% in one year?

So clearly, there is no need to over-trade, or over-stay the ride.   It is much more important to not give back your profit to the market.   It is much more important to simply focus on meeting our monthly profit quota with the best "low-risk, high-reward" setup we can find.

Therefore, we are going to be careful this week with the trades that we choose to engage in, as the ride is no longer as predictable. 

See Signal Trades for current and recent trades.   We will post new trades if any.

​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.  

Why 3x ETFs like TQQQ lose money over the long term
The risks of investing in inverse ETFs

​Updates 10:13 AM EST- Monday 1/25/21

Rising $VIX $VXN 
$VIX $VXN are both grinding upward.   If they continue, the highly bearish $VIX $VXN patterns we showed below will be fulfilled.   And that's bad news for bulls betting on $NDX $SPX IWM.   

In Signal Trades, we are aiming to enter UVXY for a Quick Bear trade.  Please note that we may update the buy order price frequently this morning.

Updates 8:00 PM EST- Sunday (for Monday 1/25/21)

Perspective
There is no crash signal on the horizon right now, but since about mid January, the appetite for big risks has appeared to be waning.   

There is a chance that $VIX $VXN may spike up substantially in the short term.   This would likely lead to a sharp drop in price for $SPX $NDX IWM.   Traders need to be open and prepared for this possibility, but don't go betting against this market yet.

Protect your profit as we may have a tricky trading week ahead.

Market Internals
Market internal messages are mixed by end of week last week.

​$VIX $VXN
As long as $VIX $VXN continue to grind downward, conditions remain bullish for $SPX $NDX IWM.

However, watch out for possibility of the bearish scenario shown on $VIX $VXN charts below.    

Updates 1:52 PM EST- Friday 1/22/21

Sell or Hold?
There are a lot of mixed signals right now.

• $VXN is rising, but $VIX appears ready to drop.
• Nasdaq A/D issues are net neutral, but NSYE issues are net negative.
• Fast moving market leaders as seen via $SOX and FNGU are forming tops.
• Bitcoin which is a useful rough measure of risk-on sentiment has formed a short term top since Jan 8.

We decided to reduce our risk exposure and protect our existing profit.   See Signal Trades for updated positions and stops. 

Updates 11:06 AM EST- Friday 1/22/21

Dip or Crash?
This morning $VIX $VXN rise resulted in drop in $NDX $SPX IWM.   So is it a dip or a crash?

First of all, it was not a very big rise by $VIX $VXN.  Enough intraday data has formed at this point showing $VIX $VXN are forming an intraday top, and are likely to drop.   The same is true with $VVIX and UVXY.

NYSE and Nasdaq A/D net issues started out the day very negative, but are climbing up towards positive territory.

All the bearish inverse ETFs SQQQ TZA SPXS SOXS gapped up this morning, but not very much, and are forming intraday tops.

$SPX $NDX IWM have found intraday support and are rising.

We are treating this gap down as a dip for now, and will continue to hold our current Quick Bull positions.   We will be monitoring for signs of surging $VIX $VXN.

Updates 1:35 AM EST- Friday 1/22/21

Summary

• There is no crash signal on the horizon from $VIX $VXN.
• $VIX $VXN are dropping and providing more bullish tailwinds for stocks.
• $SPX $NDX IWM are still likely to continue rising in the short term.​​​

Market Internals
Market internal messages are still bullish overall.

​$VIX $VXN
As long as the current $VIX $VXN chart patterns continue, they will provide bullish tailwinds to support the rise in $NDX $SPX IWM.

​$NDX $SPX IWM
While $VIX $VXN support $NDX $SPX IWM climbing higher, $NDX $SPX IWM are approaching a short-term climax, as shown below.   

The key is to be patient, protect our profits and hang in there to capture the potential sharp rise upward.   But don't get married to your short-term positions.   Don't fall in love either.   Just wait for the climax, then take your money and run.  

And don't bet against this market...yet.

Click here for current Signal Trades. ​

Updates 1:34 AM EST- Thursday 1/21/21

For while we have our eyes on the future,
History has its eyes on us.
- Amanda Gorman, Inauguration Poet

Perspective
In the end, democracy prevailed.   And a peaceful transition took place on Wednesday 1/20/21.   Wall Street breathed a sigh of relief.   The market ascended.

• There is no crash signal on the horizon from $VIX $VXN.
• $VIX $VXN are dropping and provide more bullish tailwinds for stocks.
• $SPX $NDX IWM are still likely to continue rising in the short term.​​​

Market Internals
Market internal messages are bullish overall.

Updates 1:45 AM EST- Wednesday 1/20/21

Summary

• No crash signals on the horizon from $VIX $VXN.
• But $VIX $VXN are going sideway which can be considered as an early and mildly bearish divergence relative to $SPX $NDX IWM price.
• $SPX $NDX IWM are still likely to continue rising in the short term.​​​

Market Internals
Market internal messages are mixed, but back to bullish overall.

 
$VIX $VXN SVXY
For those of you not familiar with SVXY, it is the inverse ETF of UVXY.   While UVXY correlates with $VIX movements, SVXY moves in the opposite direction from $VIX.   SVXY therefore moves in the same direction as $SPX IWM.

It is useful to analyze SVXY sometimes because it can form a bullish divergence from $SPX IWM prices at market bottom.   Conversely, it can form bearish divergence from $SPX IWM prices at market top.   So these periods of divergence can signify upcoming changes in the market.

$SPX IWM have been in a highly bullish rise in their up channels, since the drop in late October 2020.  If things are truly bullish under the hood, we should see SVXY rise along with the price of $SPX and IWM.  

However, this has not been the case since the beginning of December 2020, as shown in SVXY daily chart below.  SVXY has been going sideway, while $SPX IWM along with $NDX have been marching upward steadily. 

This does not necessarily mean the arrival of highly bearish conditions.   But still we should be mentally prepared for a possibility of a sharp spike in $VIX $VXN, and a corresponding sharp drop in SVXY along with $SPX IWM $NDX.   In other words, don't be surprise if it happens.

By the way, this spike is not a crash for SVXY $SPX IWM $NDX.  It is more like dropping down to form a big anchor at lower support, so that prices can then climb a lot higher.

​Signal Trades
We are continuing to hold Quick Bull TNA.   We may add Quick Bull SOXL and Quick Bull TQQQ tomorrow, depending on how prices and volatility unfold.

See Signal Trades for current and recent 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.  

Why 3x ETFs like TQQQ lose money over the long term
The risks of investing in inverse ETFs
More about SVXY and contango

Updates 1:11 PM EST- Tuesday 1/19/21

$SPX $NDX IWM continuing to rise
Yesterday we wrote: "there is a higher probability that  $SPX $NDX IWM may continue rising up this coming week."   

And this scenario is unfolding right now.

• $VIX $VXN are heading down along with UVXY and $VVIX >> bullish
• NYSE and Nasdaq A/D net issues are fairly positive >> bullish
• $NDX $SPX IWM all gapped up this morning, and are now about to take off. 

We are continuing to hold our Quick Bull TNA, but not planning to add a new position right now.   The inauguration tomorrow Wednesday 1/20 is still a potentially volatile event.   So we are just personally going to wait it out one more day.   We prefer to give up a bit of potential gain instead of being overly exposed.

If you choose to re-enter long today, exercise more precaution with your stops.

Updates 10:30 PM EST- Monday (for Tuesday 1/19/21)

Perspective
Since mid November until early January, the stock market has been very bullish.   But now there is a more cautious approach on the part of traders and investors.   

• The appetite for risk is slightly diminished.   This is most evident in the current topping pattern for bitcoin price.

​

• There has been more chatter about rising inflation.   You can read more about its implication here.

​

• Both $VIX and $VXN have been in a sideway pattern for several weeks.   This has bearish implications.   See more below.

​

• ​This coming week is relatively mild in economics data, but all eyes will be on Washington leading to the inauguration on January 20.   This event will be unpredictable, and the outcome may or may not result in a shock to the market.   

Traders should keep all this in mind, and protect your profits and consider trading less positions.   There is no crash signal on the horizon right now, so if all goes well, $SPX $NDX IWM should continue to rise in their up channels.  However, there is no point in taking on too much risk ahead of potential turbulence.   Market will reveal its hand soon enough.

Market Internals
Market internal messages are turning bearish, which confirms the more cautious vibes that we are picking up.

​$VIX $VXN
At this point, bulls can take comfort in the fact that there is no crash signal on $VIX $VXN charts yet.   Additionally, on their daily charts, $VIX $VXN show formations of short-term tops.   

So there is a good chance that the bullishness will continue for a while longer yet.  However, it is concerning that $VIX $VXN have been going sideway for multiple weeks now.  They are still not showing signs of really dropping yet.   

​So bulls should proceed with caution here, and watch out for one potentially very bearish scenario described on $VIX $VXN charts below.

​$NDX $SPX IWM
Note how the new green support zones are near the bottom of the yellow channels for $SPX $NDX IWM.   Given that the yellow up channels are still intact and continuing to rise, these green zones should provide strong short-term support.

What this means is that if $VIX $VXN do spike up big, $SPX $NDX IWM may drop down into their new green support zones.   However, $SPX $NDX IWM should find sufficient buyers in these zones to resume the rise up in their yellow channels.

Signal Trades
On Friday 1/15, we had re-entered just Quick Bull TNA in Signal Trades.   

​While there is a chance that $SPX $NDX IWM may encounter more bearish headwinds from rising $VIX $VXN, there is a higher probability that  $SPX $NDX IWM may continue rising up this coming week.

Of the 3 indices, $RUT IWM TNA have the most bullish momentum.   So we are aiming to capture a portion of the ride up, while minimizing risks by not having too many positions.
​
See Signal Trades for actual 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.  

Why 3x ETFs like TQQQ lose money over the long term
The risks of investing in inverse ETFs
Simple explanations of contango and backwardation  ​