On January 14th, I posted this link as a “heads up” to the what was happening in the VIX and its related ETFs and ETNs like the 3x-leveraged TVIX:

$TVIX – Just a heads up…

“I don’t know what’s going to finally trigger it nor when it’s coming,” I wrote in that post, “but when this leveraged VIX ETF turns, it’s going to explode.”

The trigger turned out to be the old reliable standby – the NYSI, the McClellan Summation Index, as long-term breadth tripped under the price surface of the market, along with the first day TVIX did not make another new low. That was on 1/22 for a buy of TVIX on 1/23 (see the blue candles on the chart).

By the time TVIX finished its down swing, it made new lows 11 days in a row, four days after the “heads up” given here (see the blue vertical line and the pink dots on the chart below) – great anyone short any VIX-related product — but that was also a sign the pop was going be a bang, maybe even more than a bang – an explosion yet to come?

Since then, three trading days ago, TVIX is up 29.9% on today’s close. UVXY, the 2x-leverage ETF, is up 22.7%.

(click on the chart for a larger view)



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