I sent a DJI 180 minute intraday chart out to my PRO trading group this morning with specific price levels across the other indices where we will be adding to April index puts. Below is the Daily version of the same chart, showing just how close the Dow is to taking out Tuesday's low intraday print. If it does, there is a real chance of a waterfall decline across all market indices. DJI Daily Key Levels for Adding to April 17th Puts (Chose one, or more, as needed*) QQQ < 592: If broken add Apr $550P; IWM < 253: If broken add Apr $245P; SPY < 670: If broken add Apr $670P. *As needed, means if account is already well positioned for 5-10% decline, no further action is necessary; but if for whatever reason additional downside positioning is desired, use the above price levels and options to implement. Discussion A break below the above levels (on the DJI, below 47,600) could usher in a swift 5-10% decline across the stock indices and in so doing, making headlines and possibly leading to trading halts. The chance that it could occur basis overnight news developments makes me not want to be a stickler on the exact price level that triggers the purchase of new puts. If any of the above levels are broken, or even appears to be threatened, I will be adding, especailly if it occurs nearer the close of trading today or tomorrow.
