Big Picture: IWM Intermediate Term We bought IWM puts yesterday in anticipation of a broader-based decline. So far, the decline has been more pronounced in the heavy tech centered QQQ index, but as this is getting posted late-morning (Mtn Time), IWM too is starting to breakdown. QQQ Intermediate Term Note that Key Support is being tested as this goes to press. Its way too early to form any conclusions as to which, if either, index is the most vulnerable to decline and/or which is best situated for additional put exposure. Personally, I own both IWM and QQQ March puts: Put Exposure The expectation is for something much deeper and more severe to the downside, although it is nice to see positive numbers on a new trade. Hard down is still the expectation and above returns only the tip of the iceberg. Gold & Silver Corner Spot Silver This is my best guess as to where Silver is headed: First, a retest of the lows made Monday, then if successful, a run up to Wave 5 of 5 of 5 highs, around $150. Upon confirmation of a successful test of Monday's Wave (iv) low (around $72), we will be adding new SLV calls. Spot Gold Best guess of where we are in Gold, with projections much higher once this retracement and test of Wave 4 low is done. Executive Summary Major buying opportunity ahead, with significant additional option gains in SLV and GLD calls, still to come. We will get aggressive to the long side once we see a successful test of Monday's lows. GLD/SLV Unexpired Options These calls remain unexpired, but, all should have been stopped out via 50% Trailing Stops (at much higher prices), save a token position held, "just in case."
