Therefore, at the first sign of a breakdown we want to be aggressively shorting the market by buying index puts and even volatility calls. Defining breakdown is my job and I'll be gauging it via the Dow Jones Industrial Average Trading Model and the one number that will be in the headlines when the feces hits the fan. Worst case, the market doesn't breakdown and TSLA, TWLO and PLTR continue higher in to infinity. Best case, we ride the storm down into a fall 2023 - winter 2024 low from which the next bull market will begin. Bottom line: Too many people are buying too many calls. DJI Intermediate Term Trading Model There are still a lot of points that have to be lost to break below the 33,700 which I've labeled as the breakdown level on this chart. It's possible the DJI will trigger a formal Sell Signal before reaching that low, in which case we will start buying index puts then and there, I'm also monitoring VIX for signs of life in that index as it will provide an aggressive and highly leveraged opportunity for calls when it finally spikes. The longer this volatility index goes without a spike higher, a 2X to 4X run-up over a matter of weeks, the better the opportunity when that moment arrives. I'd rather be early than chase, so PRO members look for early VIX calls on the first signs of life in the days ahead. Premium posiitions will be added soon thereafter. VIX - Spike Forecast The purpose of a chart like this is to provide confirmation that a massive spike is underway. We will be referring back to it in the weeks and months ahead to see just how close the forecasted targets hit. As VIX price starts moving into the target zones, assume the ultimate PANIC levels will be reached. Alternatively, if VIX lingers under 15.00 through the rest of July, expect TSLA, TWLO and PLTR to lead the market higher. TSLA A 50-50 split on whether Wave 3 is in, or still has another leg up into earnings.
