12/04 UVXY long Hello traders,
It’s time to take a look at UVXY again. Here are a few reasons why you might consider buying VIX for hedging or profit. Either way, it’s not a bad idea to allocate some funds:
1. Potential Yen-Carry Trade Unwind: There’s a strong possibility we’ll see another round of yen-carry trades unwinding as Japan prepares for another prime rate increase.
2. SPY Resistance Levels: SPY is approaching the 6100 area, which is a key resistance zone. I anticipate a pullback to the 6000 area, possibly testing it tomorrow or Friday. This movement could push UVXY toward the 21 level in the short term.
Additionally, UVXY is a good mid-term hold since SPY has a higher probability of moving downward than upward in the coming days.
May the trend be with you.
AP
