I've "dummied down" the S&P EW count on the chart below to emphasize the importance of Wave 3 as well as the working assumption that the eye of the storm has still not passed. SPX breaking below the dashed horizontal line (@3800) should trigger a market washout. UVXY (volatility) will soar into triple digits where it will likely stay for one or more days. Weekly UVXY calls with expirations of May 27, Jun 3 and Jun 10 offer outstanding leverage for the expected fear and panic mode. A less frantic option strategy is to simply buy and hold the Jun 17th UVXY calls ($18 or $20) and minimize the timing angst. Although I fully expect fireworks next week, it could come anytime between Monday and July 4th weekend and the longer it takes, the more likely it will be preceded by a sharp but short-lived market rally, the bull trap to end all bull traps. Whatever and whenever is going to be the case there will be lot of moving parts, so stay tuned. S&P EW Count - Dummied Down Next week should finally see UVXY breaking out above $20--->$40+ TSLA TSLA is fundamentally cheaper today than at any time since we have been following the company and trading its calls and shares. The print low last week was $633, a level that had generated a Buy Signal in June, 2021 and from which shares ran up to $1,243, essentially doubling in price, by the first week of November, some five months later. As the chart below illustrates, price has retraced about 50% of the mega-swing higher from $70 to $1240 between mid-2020 and late-2021 and is sitting right on its long term trend line. A further breakdown to $520, shown on the chart as the Fibonacci 61.8% retracement level, is possible and would be an outstanding opportunity to buy what should be even some cheaper 2023-2024 LEAPS, no matter what the rest of the market is doing. A market collapse that kicks in those circuit breakers and that takes TSLA to $520 is too perfect a scenario to ask for, but if it comes, be prepared to put some of those Wave 3 down profits to work - new call strikes and expirations yet to be determined.
