UVXY, important update!

There’s a good chance the UVXY position will get stopped out this morning. If so, yes it stinks. But here’s the good news: All – and I mean all – of my indicators continue to very strongly suggest the stock market is topping.

Moreover, the recent bounce has done nothing more than make the eventual downside for stocks all that much worse, by stretching the cycles out … by sucking in lots of bulls (way prematurely) …

And by creating a situation – an unsustainable one – where the majority of stocks continue to flounder or even slide, while just a very few stocks push the major indices higher.

Put another way, not only is the market on weaker and weaker ground, but the majority of investors are also being sucked in. This is what traders call the “fake out” move. Get the majority fooled into buying, then spit them out and chew them up on the way back down (conversely for bear markets).

So here’s what I recommend you do:

If stopped out this morning, reenter the position. I very rarely do this. After all, this would be the fourth reentry on the long side of UVXY (after the first trade, which spun off 121% gains, the last two attempts, losers).

But my models continue to point to a move well above $100 on UVXY. So another attempt is worth the risk.

Details can be found in the trade table below.

What if you are not stopped out this morning? Then simply wait until I give you the signal to add to the position.

Bottom line for UVXY: Watch it closely. If stopped out today, immediately act on the below recommendation.

If not stopped out, wait for my next set of signals on UVXY.

Meanwhile, gold is trading back down, right on target with the cycle forecast, and the dollar is firming, with the euro starting to roll over to the downside. Good news for those positions.

Now, here are the details on what to do if stopped out of UVXY today:

Best wishes,

Larry