This IWM trade (in the PRO Service) expired today at it's high print since entry on Aug 4th: The Russell 2000 (IWM) is leading the market down and it looks like more of the same in the days and weeks ahead. Why? Pure pattern recognition, a/k/a/ Elliott Wave Principle in which large trends move in defined 5-wave directional moves that are made up of fractals of those same moves. With these same patterns unfolding in each of our followed index ETF's, a compelling case for hard down is being made across all stock market indices. Note: I've placed a red down arrow at the Aug 4th entry for the first IWM trade set out in the table. (PRO subscribers see "Bonus Bet" in Aug 3rd PRO Update). My point isn't to pound my chest with stellar market timing, it is to give a heads-up to all Premium and PRO Subscribers for the kinds of returns expected in the current Nov-Dec-Jan option positions: Blue Line Premium Trading Service All of the above are still strong buys, absent a market crash come Monday (not expected, but if so, I will send out some updated positioning advice). We have waited a long time for this third wave down at multiple degrees of trend to assert itself, and as shown on the charts below, "Acceleration Down" is still ahead. SPY Daily QQQ Daily TLT Daily Closing in on a 5th wave target, between 70-80 GLD Daily VIX Daily A break above 25 could send VIX into the 30's for just the first impulse wave higher and double that in its own Wave 3 of (3). TSLA As shown below, TSLA is carving out a painful bottom and with "hard down" the prognosis for the general market, it's likely to break down below $200 before the carnage is over. The next Buy Signal will come several days after the low and the shares should at least double in the ensuing 90 days. First, we need a low, then we can start monitoring for that next Buy. It will be worth the wait.
