A normal counter-trend 3-day corrective rally in the major stock indices looks to have about run its course. Odds now favor a breakdown taking prices below last Friday's low prints. This may very well be the last chance to add to index put positions before volatility ramps up. There is a major low still to be made, but at much lower price levels. IWM Daily This is a familiar chart, IWM in the daily time frame, clean downtrend putting in a multi-day corrective flag, primed for a breakdown and targeting much lower prices in the days-to-weeks-ahead. Same old, same old, but until and unless that pattern changes, downward price pressure and potentially hard down is the expected resolution. Time to roll-over to IWM Apr 17th $245P (Currently @ $6.25) QQQ Daily Not much has changed in the QQQ Daily set-up, as sideways to down continues to be day-to-day. The wave count above is my best guess as to what is happening, with a breakdown imminent...as it has been since around mid-February. "Patience, grasshopper."* *"Patience, grasshopper" is a famous idiom advising calm and patience, originating from the 1970s TV show Kung Fu. The phrase was used by Master Po to instruct his student, Kwai Chang Caine, who was nicknamed "Grasshopper" due to a lesson on awareness. The phrase implies a mentor-mentee relationship and encourages developing skills over time. CVX: A Boy Can Dream - 2 Day Chart CVX targeting $225 to $250 by Jun expiration, with the $200C targeting $25-$50.
