Some of the bullish conclusions of Friday were undone today - most especially in VIX. I have rarely regretted taking defensive action with VIX exploding above all pivots. Today met criteria for taking partial profits per Daily comment of last week.

"What to do, especially if VIX is above its Q1P and JanP tomorrow? And then even more so when it lifts above its YP and doesn't look back - something we haven't seen since 8/2015. Take gains on longs that are having clear rejections from resistance levels. Bonds are not working as safe havens this year, so avoid. GLD & GLD are popping on these days especially with $DXY down - watch for these setups or add (site recommended GDX 12/13 then cut mid Jan; GLD from 12/26, still holding personally). UVXY - I've already had one great trade this year and started talking about this yesterday on the site and twitter. I think this will be a favorite setup this year as VIX low is the 2nd trading day of the year and XIV high is not far after on 1/11."

All seem like good steps except metals have since looked more toppy. UVXY was up 14% today, and although some of that was a gap there were still large intraday gains.

Today - 

SPX/SPY 1HR2 rejection
INDU/DIA back under YR1 / Q1R2 combo

But crucially, QQQ held YR1 as support and both NYA & VTI remain above YR1s as well. So not entirely bearish. 

There was pressure on global names with DXY bounce - 

FXI 1HR2 rejection
KWEB YR1 rejection
EEM back under YR1

EFA back under YR1
EWG already YR1 rejection
EWJ hanging on to YR1 by a thread

USO also back under YR1

Basically taking partial profits, reducing risk while adding to $UVXY is doing great. 

SPY, DIA, VIX and XIV below (especially watching XIV JanP and Q1P likely test for UVXY position and longs overall).

29 5 XIV D.png