BREAKING: New Fed Statement QQQ 120 The Fed, with a new Chairman, just issued a statement that has taken the market down, initially at least. It's too early to tell, but depending on where this market ends today and opens tomorrow, we may be back into QQQ puts rather sooner than later. Notable is the fact that the original bearish wave count, shown above, has not been eliminated, but remains viable, just looking for a downside catalyst. Did we just get it? SpaceX Below is a 30 minute bar chart of SPCX covering its first few days of trading. Aggressive traders can take a long position on a breakout above the shown descending parallel trend channel. Target: $300.00 SPCX 30 Minute Buy the July $250C on a breakout above the channel shown, about $210-$212. SPCX July Calls At SPCX's high print yesterday, @ $225.51, the July $250C traded to $21.58. Semiconductors Tuesday was a key day in the market in general and the semiconductor index in particular. Several key semi stocks took a beating and the entire sector is perilously close to a breakdown. As is my want, let's take a look at what is happening on the charts: SNDK Instead of breaking out to new highs, SNDK is on the cusp of breaking down. SNDK Close-up Key here is that current red bar, trading perilously close to breaking down. Semiconductor Indices SMH SOX Nothing to do now, but if these indices break their intermediate term ascending parallel trend channels, look out below. Our natural option vehicle for such an event? The 3X leveraged Bear Semiconductor Index: SOXS: SOXS Nothing to do now, but once that channels get breached, we go all in on SOXS calls. SOXS July Calls SUMMARY If SPCX breaks out of its Wave 4 channel we are Long the July $250C; If Semiconductors start to breakdown, we are Long the SOXS $4 or $5 Calls. Both trades require further action by price, either breaking up (SPCX) or breaking down (SMH or SOX), otherwise, stand aside.
