Three of the components of the CNN Fear & Greed Index are in EXTREME GREED zones indicating a breakdown is imminent: Putting it all together with our EW DJI & SPX Big Picture charts. Note how red arrows are not always AT THE DAY OF THE TOP, but are nonetheless within as few days of 2,000+ DJI decline. That is in our immediate future, even if it takes us right into next week's FOMC meeting. DJI SPX VIX - Same F&G signals applied to VIX Intermediate Term chart and the message remains the same, turn down pending with a spike in volatility. Open Trade: Buy VIX Mar 22nd $25C on VIX rise above 21 intraday, while aggressive traders can enter trade on VIX close above 20. TSLA - With earnings out of the way we can take a serious look at TSLA long term LEAPS between now and April's earnings report. We missed a 50% rally up from the January 6 lows, my bad, kind of, but the risk wasn't worth the reward knowing that the big move up in price is slated for late 2023 into late 2024 as full production for Cybertruck (and in 2025 Semi's) comes on line. Retracement of Wave (c) should be just about over, with a potential push higher to $180's (38%) an outlier possibility. After that, we look for an entry based on price patterns. As risky as it was to buy at $101, it is more risky now, especially in terms of highly leveraged LEAPS. The (a)-(b)-(c) lows may be in, but we should get another crack in the neighborhood thereof. More to come.
