Three Opportunities of 2021: (1) The 2021 Bull Market Top; (2) Tesla's drive to $1,000 and then $2,000 and beyond; (3) The emergence of Cryptocurrencies as a transformative shift in the global financial infrastructure. We can't time to the exact hour, day, week, or even month that each of these three trends will turn into full fledged trading opportunities, but we will know it when we see it. Make no mistake that #3 above has been triggered and it no longer is a, "future opportunity to unfold.' It is here, unfolding every day, even as I am typing this on Saturday morning. As far as Tesla and a market dump are concerned, there is little doubt in my mind that the former, Tesla, has already started. It will not be as steep, dynamic and fast moving as its vehicles, or but it too is here. The stock market bull market top is next. The first warning has been the bottoming of interest rates last summer, which if you recall were negative. A steepening upward curve that will crush bonds, and then stocks. Accordingly, let's take a look at the 10 year Yield and the very tradable TLT 20 year bond ETF: The signals overlaid on the TLT chart are our pattern recognition trading signals on which we base our option trades. As is evident by the placement of the signals, the big downtrend in bond prices, which correspond with the rise in interest rates, is providing strategic entries to trade new legs of the dominant down trend. The previous dominant up trend lasted 39 years, from about 1982, so interest rates can be assumed to be at the very beginning of a paradigm shift. Whether it be runaway inflation or some other financial calamity, rates will be higher for the foreseeable future. Also note from the chart that a fresh Intermediate Term Sell Signal is imminent. 20-Yr Treasuries: Weekly Long Term Trend The Big Picture: Stocks We are not going to have much time to jump on board this ticking time bomb once it starts, we will be paying attention to each and every indicator that points to the beginning of the crisis. Those bond and yield charts above can be considered the first shot across the bow of a manic stock market. IWM Head & Shoulders Top You can see a head and shoulders top in the IWM price pattern forming over the past six weeks and why IWM 220 was/is so important. Last Tuesday IWM found support right at that level and bounced into the end of week. We will key in on it again next week and any drop much below 207-208 will trigger a compelling Sell Signal, and not just for IWM. Cryptocurrencies Some of you will remember these ATR charts below from our prior incarnation as "AllanTrends." They have been especially useful in navigating in and out of these massive crypto trends. Expect to see more of these "old school" charts as we trade around the sector. Bitcoin Ethereum VeChain (VET) Dogecoin
