The Dow was up over 1,200 points on Friday, closing above 50,000 and making headlines in the wake of a volatile week for stock indices (See: Round Number Tops, below). Gold, Silver and Bitcoin all took dives, wiping out billions in market capitalization, something that will someday be known as, The Great Wealth Transfer of 2026. This is shaping up to be a perfect market for traders, let alone option traders, if we can only get it right early in these trends. Lest anyone forget, we have been all over Gold and Silver for the second half of 2025 and into January, 2026. From August to its January peaks, Silver was up over 200%, Gold up 65%. Even now, after the carnage, Silver is still up 100% from last August, while Gold is up 35%. Spot Silver Key issue going forward is when and where will the corrective Wave 4 end? Or has it already? In any case, once a confirmed uptrend has been established, we will be buying calls on both. Spot Gold Hopefully all escaped last week's carnage with hefty gains to show for same, along with renewed respect for our fail-safe, Trailing 50% Profit Stops. Mark my words, this past week won't be the last time they come to our rescue. That's why they are included in our trade tables with a column of their very own. See it, feel it, touch it, trail it (with apologies to, The Who; Tommy). TSLA Updated As set out in yesterday's late update, we may have been handed a gift in one of our favorite stocks, as TSLA recovered from having lost over $100 from its high in late December ($498.83) to its low on Thursday ($387.83) - and YES, both extreme price ticks ended with 83 cents. That 20% haircut from its all time high may very well be the turning point for the shares, with a run into the rest of this year, maybe next, taking price up to double its closing low for 2026. We shall see, as our portfolios added June calls in our favorite stock (Into The Close). As is our want, we intend to add more calls as price increases toward our $1,000 target and more in the months ahead. Elon's silence on the future of Tesla vis a vis SpaceX and xAI is about as bullish a statement as he can make. We continue to be all in on Elon. Two independent chart patterns suggesting much higher prices ahead; not a guarantee, but a reason to buy out-of-the-money calls NOW, and then again should prices confirm...by rising. We will monitor all the way up. QQQ The next most compelling chart on my screen this weekend is this Nasdaq 100 (QQQ) which for most intents and purposes, has started a deep dive, which was marked Friday by a counter-trend rally right into Fibonacci resistance. No, this doesn't particularly bode well for TSLA, but between the two potential targets, TSLA > $500 and stock indices down 15%, we will capture one of the moves big time, more than making up for the one we miss. Note: Given enough time, we could very well see our targets met in both. This is another example of chart patterns showing two technical set-ups, in this case both are pointing hard down: The Double Top targeting 530-520 and a five-wave EW impulse pattern, targeting 560-540. IWM Compelling is the best word to describe the bearish implications of this "Rising Wedge," as set out by my pattern recognition software. In other words, with IWM treading water above 255, a breakdown down from here points 20%, lower, about 50 points into the low 200's. Worth a bet? Round Number Tops The big news on Friday was the DJIA closing above 50,000. That caused me to query AI, "Does the DJIA make round number tops?" Answer: Yes, the Dow Jones Industrial Average (DJIA) historically exhibits a pattern of forming temporary tops and consolidating around large round numbers (e.g., 10,000, 20,000, 30,000, 40,000, and 50,000). These milestones often act as "psychological resistance" levels where investors take profits or set stop-loss orders, leading to, at minimum, short-term weakness or, at maximum, long-term stagnation. Kiplinger +4 Key Findings on Dow Jones Round Numbers: Sticky Resistance: Large, round milestones are frequently "sticky," causing the market to pause or pull back as it attempts to digest gains. Historical Examples: 1,000: The Dow struggled with this level for roughly 17 years after first approaching it in 1966. 10,000: After hitting this level in 1999, the index took over ten years to definitively break higher. 20,000: In 2017, this milestone saw significant sideways action before breaking through. 50,000: The Dow surpassed this level in February 2026, with early 2026 data showing it acted as a potential, albeit temporary, point of rejection. Short-Term Weakness: Data shows that after approaching a 10,000-increment level (like 20k, 30k, 40k), the Dow often experiences weakness in the short term, though these levels do not guarantee a long-term bear market. Psychological Drivers: These numbers represent easy-to-remember, landmark figures that cause, among other things, a clustering of trades (buying/selling) as retail and institutional investors align their strategies around these numbers. While these points often act as temporary stumbling blocks, they are generally seen as short-term phenomena, and the market often breaks through after absorbing the selling pressure, according to analysts. DJIA Five Waves up from the Covid lows, across multiple time frames - eerily symmetrical and looking like a top. Active Option Trades "Active" = Unexpired and not triggered by the -50%, "no questions asked," hard stop. PRO Service Premium Service
