UVXY is off and running

Daily Pit Stop [fstp, logo, header] April 24, 2024 [ag views, logo, header] UVXY is off and running The timing was interesting but our Proshares Ultra Short Term VIX futures ETF (Ticker: UVXY) trade went off today without a hitch. After several weeks of backwardation, the VIX curve settled into a more normal contango, albeit at a higher VIX level. That means UVXY should start decaying again, sending it lower on a weekly basis. [fstp] That also means we could see a faster than normal collapse in VIX if we can get through this earnings season. Right now that is a mixed bag of results with both Meta Inc (Ticker: META) and International Business Machines Corp (Ticker: IBM) disappointing. Tesla Inc (Ticker: TSLA) the market loved. Big numbers tomorrow so stay tuned for the GDP, Inflation and a whole host of earnings. UVXY should be lower by Friday. - AG  [logo, pit profits] Want to find YOUR winning fit? Give our Customer Care Team a call at [1-888-872-3301](tel:/1-888-872-3301) Monday-Friday from 9 a.m. - 5 p.m. EST. Or email them anytime at [support@optionpit.com](mailto:/support@optionpit.com)  [fpri] Right on Cue … Stocks/Bonds UP Dollar Down Hey Income Hunters, On Monday Power Income’s headline was [Cover shorts in stocks and bonds]( and sure enough we have had a great bounce off last week's lows. Bonds are still sitting near the lows but the US 2-year auction resulted in the first stop through the auction level of the year. Notice the drop in yields on Tuesday heading into the auction.  [fpri]( The drop in yields came on the largest auction for 2-year securities ever! I think rates on the short maturity Treasury securities could have more to go. [We will take a look at why in the full article here …]( - Bill  [fpip] Dead Cat Bounce or Rally? Hi Shoppers, We’ve rallied two days now. Is it a dead cat bounce or is the sell off over? I am thinking we rally and here’s why, check out my charts. The S&P 500 Emini Futures (Ticker: ES): [fpip]( After hitting the top of the pitchfork twice, ES has traded right down to my red median line support. It traded through it, intraday on Friday, but managed to close right on it. Remember the close is always more important than the intraday move. Another bullish signal is the relative strength index has bounced off of 30. Resistance comes in at $5165.75. A close below $5019 could reignite the selling. Invesco QQQ Trust (Ticker: QQQ) has a harami candle which could be the signal of a change in trend, also bouncing off support: [fpip]( There is resistance at yesterday’s highs. iShares Russell 2000 ETF (Ticker: IWM) traded down below support but has since bounced:  [fpip]( It is also up against resistance here. [I have a new trade idea in Celsius Holdings (Ticker: CELH).]( - Licia  Don't miss when our traders go live! 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