Throw-Over Key Takeaway: A throw-over occurs when a fifth wave breaks its channel. A throw-over can precede a major reversal. Within a parallel channel or the converging lines of a diagonal, if a fifth wave approaches its upper trendline on declining volume, it is an indication that the end of the wave will meet or fall short of it. If volume is heavy as the fifth wave approaches its upper trendline, it indicates a possible penetration of the upper line, which Elliott called a “throw-over.” Throw-overs occur at the end of an advance, when a final burst of optimism carries prices above channel lines and trendlines, to the terminal point in the wave structure. Source: Elliott Wave International DJIA A close back beneath the just broken top trend line triggers the pattern, with 5K to 10K DJI points lower projected. Key: Close below 34,500: Blue trend lines = "converging lines of a diagonal" Bottom Line: A DJIA drop of 400 points (<34.500) triggers a tradable bearish pattern that we will jump on with index puts and possibly VIX calls. Absent such a decline, enjoy the ride up in TSLA. Most recent Buy: Dec 15th $350C TSLA Milestones 2023-2024
