Intraday Comments & Alerts for Thursday 5/9/19

12:45 PM EST
The highs of yesterday are the new short-term resistance levels for $SPX $NDX $RUT.

BTW we will be out of office and offline as of 2:30pm today.  Sorry! 
Expect updated trading plan later tonight.

12:39 PM EST
On a day like today when emotions run wild, it's important to focus on what the indicators say.  They keep you grounded, and will provide the best guidance.

Last night we wrote:
"A sharp panicky big drop at open will set the stage for a short-term swing upward, one that could bring us in a few weeks back up to the high of 4/29/19 again. If we see this gap down, we will definitely be monitoring our short-term indicators to be sure that market internals are actually still robust and ready to spring back up."

Our short-term indicators have not confirmed the current bullish turnaround yet.
They are also not saying we are at the start of a flash crash either.

So we have to wait and see, before we jump in to build up any multi-day swing trade positions.
There are plenty of day trading opportunity today though.

10:56 AM EST
Our UVXY position got stopped out at 45.28.
Monitoring closely, but staying in cash for now.
Not convinced that we'll get a V reversal and fill the gap today yet with $SPX $NDX $RUT.

10:04 AM EST
Short-term indicators looking very bearish.
Backwardation over 6% right now.  Tailwind for UVXY to rise.

9:58 AM EST
We don't recommend entering on TQQQ TNA right now.
We ourselves bought UVXY @45.03 earlier today.

9:55AM EST
$VIX $VXN UVXY likely to go up a lot higher today.
Backwardation is approaching 5% (VixCentral.com, 1st column negative means backwardation).

Backwardation is tailwind to fuel UVXY to rise higher relative to $VIX.
Confused?  Read more about UVXY here.

9:45 AM EST
ALERT: we bought UVXY @45.03

$VIX $VXN likely to go up a lot higher today.
If you are not experienced trading UVXY, paper trade or test with a very small position because it can swing wildly. 

9:10 AM EST
New format today.  Latest comment will be on top.  Scroll down for earlier comment.  This makes it easier to read as I think you will need to monitor a lot today. 

OK.  Big gap down this morning.   TQQQ is 59.92 and TNA at 63.31.  We got that gap we want.  But the question is this.  Is it the healthy gap that we were looking for, or start of a flash crash?

We can't tell right now until trading starts.  But we are not jumping in to buy TQQQ or TNA immediately.  We are actually going to monitor UVXY as it may go up a lot.   But, we repeat.  We are not jumping in right now.  Must look carefully at the early in the day indicators.

Good luck, everyone.  This doesn't look good for the market right now.