Once again, for Short term day traders, SPY had a 2 min up divergence just after 3pm EDT today that produced about 4X(300%) in just a few minutes time!

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!

Its great having the MACD divergence in place but paying attention to the MACD turning up is the final piece of the pattern. If it hasn't happened then it's not ready. Patience is key to success.

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

In many of our nightly updates we talk about the inverse relationship between the VXX, an ETF proxy for the Volatility Index and the market proxy SPY. A divergent MACD up or down in either frequently coincide with the opposite divergence in the other. As you can see from this overlay chart, the two ticker do indeed inverse each other.

The hourly chart of SPY is overlaid with the hourly chart of VXX, notice the double top in VXX at the same time as the double bottom in SPY

Once again, the powerful strength

Daily VXX MACD has BEEN far ahead of the price(up divergence, hint hint)…… Great options trades!

 

 

Here was the first warning 1-12-18

 

 

Still not convinced? 

How about this chart of VXX on 1-23-18 

look where the MACD says the price should be

 

 

Do you see it now? 

By Friday 2-2-18 VXX was really flying

 

Here’s how you could have profited

VXX 35 calls expiring February 9, 2018

35c on 1-23-18  were $1.34 on 2-2-18

they closed on $20.80 on 2-5-18