The pattern is that of an impulse wave down which is now on the cusp of a Wave 3 crash. The backdrop of an FOMC meeting the last week of July and the set-up is that of a compelling opportunity to profit exponentially with the right bet at the right time. Aug 19th and Sep 16th index puts allow for a little wiggle room but UVXY calls may be the sleeper bet, or sucker bet if I am wrong. UVXY is trading at $14.00 as I am posting this, and needs to close above $14 to trigger the first half of the trade. Russell 2000 (RUT) UVXY 120 Minute UVXY Buy Signal(s) Pending UVXY Aug 19th $15C (1.60-1.65) and/or UVXY Aug 19th $20C (0.80 - 0.82) (1) On UVXY close above $14.00 - 1/2 position (2) On UVXY close above $16.00 - full position If there is no spike in volatility the calls will die a slow, miserable death erosion to zero. If alternatively there is a Wave 3 stock market crash with multiple instances of circuit breakers halting trading, UVXY could soar well above $50 with these calls garnering exponential returns. For EW and pattern recognition traders, if there was ever a time to act on "impulse," this is it.
