Special Note To Blue Line Subscribers This trading service has been chronicling the bear market all of 2022, all through our combined used of an objective mathematically based Trend Following Model and through pattern recognition analysis with a heavy dose of Elliott Wave theory. I've been posting a lot lately because patterns are setting up for a once in a lifetime event, a series of Wave 3 Downs in multiple degrees of trend. The upside for leveraged trading vehicles such as stock index puts and volatility calls is massive, we do not want to miss this next phase of the bear market. Whatever success you have achieved trading with this analysis and related strategies this year, the real reward lays still ahead, the best trading of our 13 years of publication is just around the corner and will be reflected in our trading tables over the course of the the next 6-8 weeks. Hang in there, "you ain't seen nothing yet." Now, let's get to work. Allan Harris, November 5, 2022 --------------------------------------- Current Chart Analysis The first chart is of the DJI having just triggered a Sell Signal on its 240 minute (4 hour) Trend Model. Note price action subsequent to the most recent Sells on the chart. The Dow has been the strongest of all indices, so a definitive breakdown of that Wave 2 channel could send it plummeting toward those Wave 3 targets, six to eight thousand Dow points below Friday's close. The SPX chart below sets out the same pattern and consequences for the market going into the final two months of the year. How long it takes to reach the indicated Wave 3 targets is open for debate, but not for long. The QQQ 30 minute chart suggests a steep decline is imminent. QQQ puts are at the top of the list for appreciation potential in the days ahead. This year-to-date chart of IWM leaves little room for retracement higher. Any move below 175 targets 120-130 by year end. IYR is now forecasting $50 for its third wave target. Jan 20th puts remain cheap and second only to UVXY calls in terms of potential bang for your buck. Finally, the one piece of the puzzle that has yet to fall into place, Volatility. UVXY will be a primary focus in the weeks ahead as we look for spike up, 5X to 10X, before year end, starting any day now. A breakout above $10 could send UVXY hurtling toward $50 by mid-December Top Three Picks Top Speculative Pick Special Note For PRO Subscribers The trade discussed in Friday's Special Alert was triggered before the close.
