UVXY concerns me - here's why

Hi guys and gals, Jason Bond here, Jeff’s first student.

3 things have me really worried tonight:

1. UVXY, the VIX fear trade, is stubbornly bullish, up another 13% today (chart below)

2. 10-year Treasury yield above 4% = scaled back near-term Fed cut expectations

3. NQ and RTY back below their 10-day EMA

While we’re unlikely to see another correction, like back in August when UVXY, the VIX fear trade, skyrocketed to $60’s, I am concerned with it grinding higher.

No doubt the main driver here is the Middle East tensions. Normally UVXY trends down because it decays in value over time due to “contango” — but it’s grinding higher again.

One of my goals at RagingBull is teaching traders how I grow $2,000 balances. I trade low-priced stock options on earnings winners when they are above the 10-day EMA.

I have 3 main rules:

1. UVXY should be at or below the 10-day EMA

2. NQ should be above the 10-day EMA

3. The earnings winner, like META, should be above the 10-day EMA

By keeping the strategy simple I’ve been able to have some success teaching members how I grow $2,000 balances.

For example, my main balance as of today is on a 19 trade win streak or +$10,220 in the last month. This brings that $2,000 balance up to $34,355.

Recently I started trading another $2,000 balance and in just 5 trades or $2,085 in gains.

Collectively that’s a 24 trade win streak. Pretty impressive, but not quite my best, which was 69 across about 2-months.

I want to point out that I cannot speak for my members’ performance, as results may not be typical and trading is HARD. And I cannot guarantee you will make money. But what I can guarantee is that I will work my BUTT OFF to teach you WHY I trade WHAT I trade.

I’m very bullish on stocks.

We’re a few years into this bull run and I think it could last 6-7 more. But tonight I stayed cash in the $2,000 Small Account Journey because something is up with the market.

I certainly don’t feel comfortable with how UVXY is grinding higher.

In my view the 10-year yield should be coming down as we head toward rate-cut two around the election.

And with the NQ (Nasdaq futures) struggling to get above the 10-day EMA and stay above it, I’m worried a dip to 19,000 might be coming.

It’s difficult to grow $2,000 — that’s a fact.

But because I have this 3-step checklist in the $2,000 Small Account Journey:

1. UVXY should be below 10-day EMA

2. NQ should be above 10-day EMA

3. The earnings winner, like META, should be above 10-day EMA

I’m able to increase my odds of winning.

Ya, META is above the 10-day EMA, but look how a rising UVXY and declining NQ weighed on it today.

Sure, I could bet against META but I’m not bearish META. They crushed earnings and gave great guidance. If anything I want to be entering low-priced options into dips.

But to give myself the best chance of making money on the trades, I prefer for UVXY to be below the 10-day EMA and NQ to be above. When they diverge from that, as they have today, it can be a sign of a problem in the market — even if I can’t see what the problem is yet.

My biggest win streak is 69 straight across a few months doing this.

My best performance is $2,000 - $47,965 across about 6-months:

So again, trading in general is very hard.

And trying to grow $2,000 is even harder.

But this options trading blueprint for small accounts I created » » » which you can have « « « is how I go about trying to navigate all that.

And I even alert my real-money trades in real-time so you can learn in real-time. This isn’t some ‘back tested’ strategy — I’m actually doing this right now.

Here’s Friday’s alert, to members’ phones, on NVDA at $1.

Closed that win this morning. You can see that NVDA trade above in the last row of the $34,355 balance, which is on a 19 trade win streak, below.

This isn’t some get rich quick nonsense.

This is a defined risk strategy specifically tailored to trying to grow a $2,000 balance on low-priced options.

Will you like it?

I’m not sure — but here’s what existing members have to say on TrustPilot.

Bottom line. I was concerned about the rising UVXY, rising 10-year yield and NQ below the 10-day EMA. In my mind there’s nothing wrong with sitting a night out of the market. If things stabilize Tuesday I’ll probably jump right back in 2-3 low-priced options swing trades and alert members. We’ll know more in the morning.

So right now, check out the $2,000 Small Account Journey » » » learn more here « « « and see if you want to try this options trading blueprint for small balances — I think you’ll love it.

Eat, sleep, and trade!

Jason Bond

WARNING: This isn't one of those "get rich quick" things that promises you a fortune for doing nothing. I do not believe in "get rich quick" things - only in hard work, adding value and serving others. I can not and do not make any guarantees about your ability to get results or earn any money with my ideas. After all, it takes hard work to succeed at anything in life. Your results are up to you and the amount of effort and resources that you are willing to put into succeeding. I want to help by giving great training, direction and education that move you forward. Learn more here.

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