The extra day off at the end of last week provided some needed space, to take a step back and gain some perspective on what may be coming in the days-to-weeks ahead. Friday was a quiet day with only Bitcoin trading and without the usual distractions, I was hoping for some clarity. Alas, geopolitics still dominates and the course being set by the markets remains mixed, one dire to the downside, the other sparked by whom else, Elon Musk and his SpaceX IPO. Accordingly, this weekend's treatise will be organized on a bullish/bearish theme, the former addressing the now $2Trillion IPO for SpaceX coming circa June and how we intend to capitalize on same as Elon once again makes a historic impact on the markets. As for the latter, the "bearish" view, it is still stubbornly mired in our big picture analysis, which is unchanged and with which we will start things off below, saving perhaps the best new idea for last. The Big Picture We have been right the big picture market directional analysis, but have no significant option gains to show for it. That leads to only two explanations: Either we are wrong on downside projections, or, we are too early in our assessment. If we are wrong, then the section below, "SpaceX IPO" is the most important and actionable strategy we have devised since Long TSLA in December, 2019. More on that later. DJI 2-Day Leading off this weekend with the Dow 2-Day chart because there is virtually no other way to interpret this EW structure than in the midst of five waves down...five incomplete waves down. SPY Weekly Just as persuasive is this SPY Weekly chart that has kept us short since that last red arrow. Most likely outcome: A touch of the 8 week EMA from below followed by a reversal back down, a deep dive to the ultimate bear market lows (see QQQ and IWM below for targets) QQQ Daily Last week, a three-day geopolitical headline generating rally took the Q's up over 6% off of its lows, wiping out all of our index gains in one fell swoop of a Wave 4 countertrend leg higher. The expected payoff: Wave 3 of (5) DOWN that no one is expecting next week. IWM Daily I'm counting last week's rally as a Wave ii in this Daily IWM chart, setting up the next few weeks as a hard down unfolding of waves iii iv and v, all part of a Wave 3 to IWM 220, or lower. April puts will have to be rolled over to May at come point before expiration in order to benefit from all of the expected decline. If stopped out, expect to buy May IWM puts next. Stock Index Option Strategy In anticipation of a hard down week (or weeks) ahead, I will be closely monitoring next week's market action with a view toward adding to my index puts, notably QQQ and/or IWM. I'll post any new trades as they happen in the trading services. Consistent with "Next Month" expiration guidelines, any new positions will now be in May 15th, monthly expiration. SPACE X IPO Although we won't be buying SpaceX's IPO anytime soon, last week provided a snapshot of just how the tentacles of this massive offering will generate mega call opportunities in 'sympathy trades." In other words, any stock with "Space" in its DNA is likely to outperform, if not outright soar as the IPO draws near. We did quite well in 2025 with some of our favorite stocks in the Space sector, and the same names are on my SpaceX sympathy watchlist this year. Let's take a look: PL If PL looks and sounds familiar, it should, we bought the PL Apr 17th $22C back on January 5, 2026. We WILL be rolling over at April expiration, absent a price breakdown below the lower trend line of the parallel horizontal trend channel. RKLB Another former big winner from 2025, RKLB is setting up for a classic Wave 5 Buy Signal, targeting $115. Calls - pending. ASTS 2-Day Wave 5 Buy Signal - Pending. ASTS can more than double from here to Wave 5 objective. LUNR 2-Day Another Wave 5 Buy Signal - Pending, LUNR is garnering lots of attention via the current moon mission, with huge NASA contracts and technically, another Wave 5 Buy Signal - Pending. UFO All we need to know here (besides the unique symbol) is that UFO is one close away from triggering a Wave 5 Buy Signal, but there is more: " The fund invests, under normal circumstances, at least 80% of its net assets in companies of the underlying index that receive at least 50% of their revenues or profits from space-related businesses." UFO Jun $50C A quick and easy way to gain leveraged exposure to the Space sector. Space Option Strategies Calls on all of the above "SpaceX Sympathy Stocks" are attractive add-ons to current +300% calls in Planet Labs (PL), with potential returns to match. We will buy them via future updates, regardless of any big picture trepidations. Active Options Premium Service PRO Service
