The Big Picture Last week was a tough one for our QQQ puts, but, on the bright side, July expiration still has over 30 days for the preferred wave counts to play out. Better still, although the Q's have found some resistance at a Fibonacci 61.8% retracement (see Friday's Into The Close) between the DJI, SPX and QQQ, the maximum ceilings of 78.6% retracements of respective legs down last week are but a stones throw above Friday's close. Accordingly, soon after Monday's Open the market should take a stand, either supporting the bearish case illustrated by the wave counts set out below, or open the door for further gains above last week's high prints. What risk is left in maintaining bearish positions is minimal, while time and price hold out for significant gains to the downside if these wave counts play out as shown. Minimal further risk versus maximum potential gains...plus, an FOMC meeting to boot, all waiting for us next week. DJIA Daily The key takeaway in all of these charts is that if five waves to the downside are indeed unfolding, the second wave retracements have reached maximum price levels, or close thereto. Hard down from around these levels confirms the wave counts. SPX 120 Minute QQQ Hourly Stocks Of Interest If the market spikes higher next week, we can consider getting more aggressive on Long ideas. Here are three I am watching. SpaceX (SPCX) This two-minute chart of SpaceX from it's IPO price of $135 to Friday's close shows a typical 50% retracement of an initial impulse, setting up for a run to new highs next week, or, conversely, tanking to or below its $135 threshold pricing. Next Tuesday calls and puts on SPCX will begin trading and I already am devising strategies to play the shares, both ways. Let's see just how volatile and expensive option pricing is before jumping in, but jump we will. SPCX 2 Minute Options: Pending NOK We were stopped out of the July $15C for a double (trailing stop @ +99.57%), but NOK remains a speculative a Buy as it just takes about a 10% move for at least a double in the calls. Next Buy trigger @ $15.20: Sep $15C = $2.50 or Sep $18C = $1.60 SNDK All I can say is, "Could have, should have, would have," as SNDK is up over 700% YTD and that's just the shares! What was I thinking? The calls always seemed too expensive for a recommendation. The up arrows show where my simple breakout system could have, should have, would have, gone long, near term calls (same methodology as NOK, above). Calls: Jun 18th $2,500C = $5.00; Jul 17th $2,500C = $100.00 (See what I mean?) Gold & Silver Gold has been playing out to the downside since the January highs. I am only interested in being Long Gold (and Silver) and for the first time since those highs we may have a bottom formation from which Gold can breakout. Watching and waiting, but, as the chart suggests, its getting close to a Buy signal. Gold Daily $4,000 looks to be a low that can not only hold, but be a base from which higher prices can be expetcted. Still a few days or weeks away, but Gold is finally back on my watchlist. Silver Daily The last time I posted this chart of Silver price had just tested the first up arrow and I placed two more arrows on the chart, suggesting one of the three would be a tradable low. Now price has tested the second up arrow. Worth a shot to the long side? Let's just say, "Pending" for now. Active Option Positions PRO Service Premium Service
