The past few week's focus on the developing EW price pattern has been because it is the number one opportunity on the trading horizon right now. As shown in Tuesday's, "Wave 3 Alert," the DJIA is entering a potential Wave 3 down. If this unfolds, the returns generated by index puts (IWM, SPY, QQQ) will be substantial, even exceeding the Best Levels generated by January's picks: Because the two February 18th positions are expiring tomorrow (Fri) we had recommended rolling over into these stock market index positions in the Feb 10th Premium Service update: Mar 18th IWM $200P (5.60-5.65) Mar 18th QQQ $350P (11.95-12.00) Mar 18th SPY $450P (16.20-16.50) In light of the potential for a volatile Wave 3 ahead, aggressive traders can consider going further out of the money for additional leverage. In the end, it doesn't matter so long as we get the direction of the market over the next few weeks right. Right now, that direction is down. Some near term uncertainty is being created by the fact that our market will be closed on Monday (President's Day), but global markets will be open. That means three days of news in front of the market before next Tuesday's open. Nonetheless, the trend is down and the potential, based on the EW pattern, is for hard down. DJIA - Big Picture Key Level = 34300 Breaking below the Wave 1 low of 34300 almost assures that this wave count is accurate and that 31000-32000 is directly ahead. Other indexes will have similar declines.
