I'm sending the Mid-Week summary out a day early with this admonition: Starting next Monday there will be three full weeks leading into December expiration. No excuses. My expectation is for volatile markets in stock indices, bitcoin and precious metals. The big move expected will be in stock indices, a third wave down at multiple degrees of trend. Bitcoin represents the next big move and it too is signalling more downside to come. Finally, there are precious metals which could go either way, especially in front of the next Fed meeting the second week in December. If its up in gold and silver, we will be adding aggressively to option positions expiring in the first quarter of the new year. As is our habit, we will wait for clear and convincing breakouts/breakdowns before any new or major commitments. CHARTS - Updated QQQ 240 Minute The pattern is similar for DJI, SPX and IWM. A variation of 1st and 2nd waves in front of what should be a vicious third wave down. If QQQ reaches to 610-615 then reverses back down, more downside bets will be in order, as that will be a high confidence set-up that wave iii of 3 down has begun, targeting 560-520 into end of year. GLD Daily The consensus is for one more leg down in precious metals before a new impulse wave higher across the board. The above pattern is saying consensus or not, there is a Wave 5 Buy Signal - Pending. We will key our trading to whichever happens first: Leg down, or new highs and if the latter, look for Special Alert with new picks. Note what happened after previous Wave 5 Buy in August. BTC Daily A precursor to what lays ahead in stocks? You know my answer. BTC can still be cut in half from current price levels, with Nasdaq close behind. Active Options - Premium Portfolio Expect to add to Active Option positions with new expirations and strikes starting as early as next week. Trailing stop levels are for general guidance as I am reluctant to let a trailing stop take me out of any of the above positions in a sleepwalking induced holiday market .
