etfmsolutions: VDX Updates, Trader Outlook and More....09.04.16

Sunday, September 4, 2016

VDX Updates, Trader Outlook and More....09.04.16

September is upon us and historical performance has been weak as shown below. Still, the catalysts for a breakout or breakdown from the narrow range August remain elusive and each attempted break has been met with a retreat all month. Traders Outlook is modestly bearish in this context.
The VDX charts appear to be confirming this malaise as the VDI +/- divergence we witnessed last week appears to be reversing in all three charts. For short term traders a breakout in the VIX appears to be a high odds play when VIX falls to the 11s....just don't hang around too long.
We've been active with the MVP currency and country ETFs where the risk/reward dynamics are, for the present, more favorable than US equity indices and we'll look at the latest setups next week.
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