Making a living in the $UVXY Wedgie World — UPDATED

A Simple Strategy:

Whenever a new UVXY falling wedge forms it’s time to watch and wait for the next fast and furious break to the upside.

Patience pays.

As presented in previous posts here on the wedgie world of $UVXY — Back on $UVXY Wedgie Watch and “In the World of $UVXY, wedgies rule” — this is a simple trade with a clear signal whenever it comes around, which is does again and again.

And each time an adept trader can make anywhere between 10% and 50% like a bolt of lightning.

I would even go so far as to suggest UVXY, which trades opposite the general market, is a single stock-market product one can use exclusively to make a living. Take a walk back through the posts in those two links above to see the rapid run off this wedgie setup that has happened repeatedly.

On this last run (see the chart below), UVXY has given a sell signal for tomorrow’s open (buy the yellow, sell the blue).

It is up 16.5% on the latest market tumble, and 30% on its swing trades since the NYSI set the tone for market on 8/19.

Those percentages easily contribute to making a living by exclusively trading this one ETF.

The green flag on the right axis shows the cash banked for each $10K in the swing trades. The white flag shows the current profits on the close today in the $10K play.