The plethora of recent Updates and Alerts is for a reason, i.e., a major trading opportunity is unfolding over the next 60 days and I'm doing my best to make sure my subscribers are on top of it. The market will calm down into early 2025, and I'll return to more periodic updates and special situations, but for now, the entire market constitutes a special situation, i.e., a crash window and its open for business at least through the end of November and maybe one month thereafter. Over the weekend I introduced a new directional trading indicator based on 2-Day SPY charts. It is hovering ever so close to a Sell Signal and there is little doubt it will trigger in the next few days. SPY 2-Day Here it is over the course of the past 12 months. What we are looking for are times when the two signal lines (alternating red and blue as per the most recent signal) that are tracking the price bars come together and flatten out. That is the warning that a new trade signal may be imminent. That is exactly what is happening this week. The two trigger lines are currently horizontal at about SPY 555.00. So long as SPY stays below that price level, below the lines, consider it in "Sell Pending" mode awaiting a formal signal. It may generate an early signal, or not, but in either case we want to own SPY puts upon the generation of that next Sell Signal, no questions asked. Yesterday's update provided three SPY put tables with expirations that span out into the rest of the year. We will officially start tracking each of those three expirations and highlighted strikes upon the triggering of the Sell Signal. Individual traders can stagger purchases, preferably one shorter term and one longer term. At a bare minimum, own one of the November or December options the week of the national election. I will be following each position in our performance tracking table as though bought at the time of the signal. Link to Yesterday's Update . QQQ - Hanging by a thread If still holding these puts: Turning into an all or nothing, high stakes trade. IWM Daily Pattern Recognition: Five waves up into a Major Top; now tracing out five waves down into the election and beyond. The SPY trading signal is based on algebra, the QQQ and IWM analysis is Pattern Recognition (Elliott Wave Principle) which is based, more or less, on geometry. When there is consensus of methodologies, a market direction trade becomes high confidence. Quote of the Week "Two to four months of mayhem seems a reasonable expectation. Countless pundits are calling for the S&P to hit 6000 soon. We think the Dow will hit 6000." -Robert Prechter, describing current market crash potential: The Elliott Wave Theorist, Sep 3, 2024.
