Strong Sell-Off Due A strong sell-off is indicated in an "all of the above" mixture of indices and time frames, from weekly to daily to intraday as short as the 15 minute patterns. While that doesn't guarantee a September selling climax, it is enough to recognize the pattern and have a price trigger to double up on aggressive put positions. To make following along easier, let's use the instructions from Thursday's afternoon update, i.e., a SPY hard break below 442.75 but note, if SPY drops below last week's low expect an across the board following by other indices, the more the merrier). SPY 240 Minute Trading Model Trading Instructions On SPY breakdown out of Fibonacci retracement window buy more Oct 20th $430P for potential 10X return by expiration. The above SPY chart has been updated to reflect Friday's trading session. Price is still meandering in the Fib window, so Thursday's described trade has not yet triggered. A drop down below about 442.75 (lower border of Fib box) triggers what could become a 10X option trade between now and monthly expiration on Oct 20th. These opportunities set up just a few times a year and our job is to identify the set-ups and react by implementing the highest and best risk:reward options play available. SPY Puts: Add-On if SPY drops below 442,75 anytime next week: Bearish Pattern Recognition Set-Ups: Multiple ETF's & Multiple Time Frames DJI Daily Trading Model QQQ 120 Minute Trading Model IWM 240 Minute Trading Model SPY 15 Minute - Very Short-Term Set-Up TLT Weekly Trading Model Key inflation numbers & FOMC in the next two weeks.
