Thursday Update: Revisiting UVXY

With the Dow up 150 points mid-day, my attention is back on UVXY. This entire week has seen an up market along with up volatility indexes. Even today VXX is higher while the Dow is rallying. 

Here is a daily chart of UVXY going back six months. Noteworthy is the inability of price to close above the trend-line even through on many occasions it either approached, touched, or even broke through the trend-line intraday. This short-term phenomenon is very evident on the hourly chart below. But first, take a look at the daily chart and in particular how price has not been able to close above its intermediate term trend line:

Now the hourly chart going back sixty days. Not only is UVXY on a very short-term Buy Signal here, but the importance of a close above the highs of the past week and one-half  Is clearly evident:

Accordingly, if UVXY closes today above $10.10 the Special Situations portfolio will be going LONG UVXY. This is not an options trade, but for the more aggressive traders we are already long the VXX Feb $27 Calls in the Blue Line Prime Short-Term trading portfolio.

One Last Thing - A message concerning tomorrow from Arch Crawford, legendary astrological and technical analyst from Tucson, Arizona:

JAN 25 = Mars and Admetos at midpoint of Uranus/Hades = A truly nasty day (week?). One of the meanest, ugliest in ages!

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