Wednesday IWM closed below $194, triggering the purchase of the IWM Mar 15th $195P, around 5.50 to 6.00 depending on time of entry. As this chart indicates, IWM has entered a third wave down with an initial target between 170-180. In fact, all of the various indices and their respective ETF's are suggesting a major change of trend is taking place to the downside. As a result we are already seeing intraday cross-currents, up and down, even with IWM and still to come are earnings from AAPL, META and AMZN. We will take this one day at a time, as if the longer term patterns are correct, there will be months of decline ahead, well into spring and/or summer, to say the least. Once the downtrend is confirmed by all indices, which could happen in a matter of days, we can begin to look at some individual stocks for short ideas (see BOTZ below). The run-up into the recent highs means many stocks are overextended and ripe for precipitous falls. Stay tuned, it's only just begun. IWM SPX QQQ BOTZ (Global AI & Robotics ETF) - Sell Pending Weekly Daily Shorter-Term Look June Puts - Optional Trade Pending At a minimum, BOTZ should retest the Oct 2023 lows around $22.26. That projects the June 21st $30P to 8.00, or approximately 4X its current price. Worst case, a test of the Oct 2022 low at 17.33, projecting the June $30P to $14 for a 7X return. Despite all the excitement surrounding AI and Robotics, this once darling sector IPO'd at around $14 in 2016, topped @ $40 in November 2021 and it's not done correcting. Note: Dearth of volume and Open Interest is not ideal for trading, will be monitoring for the next few days before a formal recommendation.
