The daily upside MACD divergence with a double bottom is clearly in place by April 22, 2019. The reverse V-shaped pattern is clearly almost a full trading month in length. Generally we can expect the pattern to play out to the upside over the same period.
Prices rose for several days before stalling around May 1. At this stage a reentry into the upside move requires the lower time frame MACD to show a clear divergence to the upside to feed the strong daily MACD divergence that is still in play.
The Options Hunter tweeted this to the Big Game subscribers on May 3, following a discussion the prior day to keep a watch out for the reentry opportunity.
The 15 minute chart through 11.45am eastern on May 2, 2019 clearly shows an upside divergence on the MACD.
The near to expiration May 3, 10 calls made huge gains.
The daily MACD divergence to the upside on Boeing is clearly visible on April 10th. A divergence that suggests a 2 weeks plus move. The move stalled 4/17/2019 with 1000% gains on OTM call options. A lower time frame reentry on 4/25/2019 on 30 min charts also yielded good gains on OTM call options.
Make that 4X on SPY 290 calls since 10:45 today! 5 X on VXXB puts! These are the easiest ones to locate since they are the primary sources of market action! Why buy MU options if the major market indexes have the same patterns & unlimited options capacity??
Wait for the setup MACD divergence and double top or bottom and then place the trade. A few hundred percent gain isn't too shabby in a few hours. Patience is the key. SPY weekly options rule.
For short term traders and short term charts, VXXB upside divergence on March 26/27 15 minute charts clearly shows us that the SPY would do the opposite and send markets down until the technical picture starts to stall and that’s the end of the move. Then you can spend the rest of the day counting the money you made.
SPY 278 puts at 10.30am went from 2 cents to 81 cents in a few hours.
SPY 281.5 & 281 puts were up about 500% from 11am to 11:35am Eastern time today just based on short term charts on an expiration day!
Note how WYNN had another 30 min up divergence late Monday to add fuel to an already divergent daily chart! That’s how you successfully trade a new entry to an existing pattern! Low time frames form “another” divergence in the same direction as the higher time frames!
Some VXX downside divergence in latter part of Friday but not overly clear. GS had decent daily divergences to the upside still on going the XLF had a series of 60 minute divergences in play earlier in the week