This ratio is a sentiment indicator. The two funds are tide to the daily performance of the S&P 500. The Nova Fund gains value if the S&P 500 gains value And the Ursa Fund gains value when the S&P 500 declines. SPY is shown below the Nova/Ursa ration chart. The close correlation is clearly visible.
The daily chart below shows SPY with two 50-period Bollinger Bands, one with 1 standard deviation and the other one with 2 standard deviation. SPY has been able to stay above the lower 1 standard deviation Bollinger Band and it has been strong enough to touch or move above the 2 standard deviation upper Bollinger Band during the time frame shown on the chart. In the past SPY moved lower after such an explosive move above the upper Bollinger Band.
I put in a couple of trades recently and I'll show them in my virtual trading account. One of them is a VIX call option with September expiration. It didn't make as much money I thought it would but it still has some potentials. I also bought a GLD straddle. I am not too happy with that, I'll sell it. I expected a bigger move, but it still made some money. The best one is a SPY put with October expiration. I will definitely keep this one for a little longer.