Watchlist - 02/12/2018

Selecting Stocks and Analysis

I’m seeing lots of stuff up during premarket and the $SPY gapped up but is kind of sideways. Primarily going to watch $INPX / $POTN then wait for an opportunity on $TVIX if one presents itself.


$TVIX

On watch in case the market decides to crash again.

$INFN

Earnings. Some support around $9.15 / $9.00.

Float: 145.78M
Short: 10.24%

$POTN

On watch for big panics. It hasn’t been doing much lately though.

Watchlist Review

$INFN had a panic down to $9.00 but was really choppy. It spiked to $9.20 in a matter of seconds so there was no time to get in unless you bought very quickly into the panic.

$POTN had a small spike but no real panic. It’s not as active as it once was.

Nothing really that great today. Doesn’t feel like I missed anything since there wasn’t anything crazy.


I need to develop some type of strategy for trading $TVIX. My $SPY support crack idea would have worked on Friday so that’s one. The next I’m thinking about is to wait for the $SPY to have multiple green candles in a row (5+) then buy $TVIX when the first 1m candle makes a new low. It’s basically just a reversal trading strategy. The idea being that the $SPY simply cannot keep going up forever and there will be some type of pullback that causes the $VIX to increase.

I’ve highlighted the buy “zones” on the charts below. You will have to sit through some choppiness since the $SPY never drops instantly ($VIX will be up/down for a few minutes). Profit target should be 50c-$1/share or when the $SPY is starting to bottom. Get out if the $SPY makes a new high over the red 1m candle.

This “pattern” literally just happened and I didn’t trade it. It’s kind of hard to develop a trading strategy while you’re watching it play out. I suppose this strategy is repeatable throughout the day as long as the $SPY goes up a lot for several candles and then starts to top out.

$TVIX / $SPY

It’s important to note that the $VIX is simply a number and does not actually trade. It’s based on the volatility of the S&P 500 options. Support/resistance or other chart patterns are useless on any of the $VIX based ETFs/ETNs.

Also, I would never hold any $VIX ETF/ETN for more than a few minutes/hours since it can change rapidly. I would also never hold overnight (long or short) unless I was sure the market was going to 0.



Disclaimer

I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.