The stock market has been overbought with the VIX treading near all-time lows. It has been a favorable time to closely watch for potential UVXY spiking action.
Yesterday, the 620 MACD on the UVXY 5-min chart showed the following:
If you bought today when the 620 MACD fast line crossed above the slow line when UVXY was at 19.84, you might use the low of today of 19.6 as your selling guide. If you bought yesterday when UVXY was trading around 19.33-19.38 as shown in the chart above, you could be more flexible with your stop.
As a general rule, keep your stops no more than roughly 1% below your entry price. Often, you will find your exit points on false signals will actually show breakeven or slight gains as price action reveals further evidence of the signal being false. If you buy late having to pay a percentage above 19.84, your stops would be larger than 1% by that amount. More on 620 MACD here: https://www.virtueofselfishinvesting.com/faqs/answer/the-6-20-moving-averages-and-macd
Trading Volatility Report - UVXY Buy October 4, 2017
|Published:||4 Oct 2017 10:37 ET|
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