Wash.Rinse.Repeat: VIXY ($VIX VIX volatility index ETF) offers an objective long entry here at support following this most recent divergent low and/or* on a breakout above the downtrend line on the daily chart below.
VIXY daily Jan 30th
Stops would be commensurate with one’s entry price(s) and preferred price target(s), although my best guess is that this trade either starts to play out tomorrow, should the market start to fall following the big earnings from AAPL et al. tonight, or the $VIX will continue to grind around or drift slightly lower in the recent trading range. Regardless, I don’t trade the $VIX very often & even if the odds of this trade hitting any or all of the price targets shown on the chart above isn’t “very high”, the profit potential & R/R makes this a compelling trade IMO although my preference is always to take a reduced position size when trading the $VIX (relative to a trade on the stock indices) due to the above-average gain/loss potential & extreme volatility.
VIXY daily July 11th
The chart above is the previous trade idea I posted on VIXY back on July 11th, literally the very day before it bottomed & exploded 127% from there to hit my 3rd price target to the button before reversing.
* “and/or” refers to a strategy of taking a partial/starter position here at support, adding to that position only if & when VIXY breaks out above the downtrend line.
Disclaimer: Past performance does not guarantee future returns. ;-)