UVXY bounces on pre-March 2020 crash support

已更新

UVXY which is a 3x leveraged etf tracking the VIX(volatility index or in simple terms fear in the market) has bounced from the pre march stock market crash support of around $10.5. The RSI has registered higher lows while the OBV looks like more shares are being accumulated. Plus the trading volume has increased considerably over the past few months.

Possible reasons for more upside:
1. Short term correction in S&P after the long 2020 bull run despite the economy being in shambles. Also the greed index is very high with wide consensus that the market will keep going up forever. Possible rotation of large investment bank funds from equities to safe havens such as gold and bitcoin.
2. New stimulus bill not being passed for $2000 instead of $600.
3. Trump not conceding & other election uncertainties.
4. Iran & Israel/US standoff. Israel submarines and US aircraft carries are near the strait of hormuz.
5. China & India standoff. China deployed large amounts of radars & air force personnel in the Ladakh border.
6. Another country wide Covid shutdown due to a new strain.
7. Vaccine delays or issues of unintended side effects
8. Trade wars affecting supply chains. This is already happening.

Possible reasons for downside:
1. Fed injecting more magic money into the system.

Suggestions:
Buy some January & February call options . Do not hold this long term. It has a high decay due to being 3x leveraged!
Move funds into undervalued sectors such as commodities.

Note:
This is not financial advise. Please do your own research.

註釋

Correction: UVXY is 1.5X leveraged ETF not 3X.

交易進行

Large volume uptick.