The big news of the week was not really much news at all, more of a hint of lower interest rates to come. Next Fed meeting is Sep 16-17 and expect every economic report published between now and then to rock the markets, one way or the other and in some cases, in both directions. We will do our best to ignore everything except our charts, because, as I am frequently reminded, "if it ain't broke, don't fix it." The Big Picture All the indices were up big Friday and there are basically two ways to interpret it. First, as the beginning of a new leg up in an ongoing bull market. Reading social media and listening to the talking heads, that seems to be the consensus. Which leads us to a second interpretation: Fake-out. How is a boy to know? Giving up the Powell led gains would be a definitive warning to take cover. Heading into a seasonally weak month of September, its a market path to be cognizant of and it would also likely take Crypto and Gold stocks down with it. Nonetheless, the path of least resistance for the time being is up, and all the index charts agree...for now. IWM The Russell 2000 has been the weakest link in the major market indices since the Intermediate Term lows in April. As such, it is a good index to keep an eye on, sporting a recent Wave V Buy Signal (Aug 13), a third wave up at multiple degrees of trend and targeting somewhere between 275 and 335 to complete the pattern. It closed Friday at 234.83, +3.92%, compared to the DJI +1.89% and QQQ +1.54%. With that kind of out-performance, an IWM call is a quick way to get bullish exposure. IWM Sep $240C Not a recommendation per se, for that see my top picks from yesterday's Into The Close (or see GEOS below), but if someone was all cash and needed quick exposure to an ongoing bull market, the IWM Sep $240C was up 175% on a 4% move in the index on Friday. New Pick With Labor Day now front and center, expect slow markets into the holiday weekend, then the fun begins. Meanwhile it would take an exceptional breakout to get me excited for any new picks. You already know my favorites from yesterday's Into The Close. The stock below has been on my radar since its late July breakout @ $11.50 and this chart pattern, a third wave at multiple degrees of trend, is well worth some cheap calls, $2 & change, no matter what the Fed has in mind. GEOS This is where I would normally describe a company's core business, but, that's not why I'm buying calls here, its solely because this price pattern is suggestive of share price doubling into the end of the year. GEOS is a Buy so long as it stays atop the parallel trend channel shown from mid-Jun, above about $18.00, the low yesterday's breakout bar. If knowing their business helps in buying the calls, here's their link: Geospace Technologies. We are adding the GEOS Oct 20th $20C with a stop below GEOS $18.00 Active Option Tables PRO Service Premium Service
