IWM A hard close below last week's low (191.30) makes the case for a precipitous drop toward the late October low (161.67). In terms of options and strikes, the $190P will end up being worth close to $30. These puts were trading late Friday around 2.95 (table below). An immediate collapse now in mid-January will open the door for multiple instances of 10X returns as the year unfolds. Bitcoin (BTC) Above is a long term weekly chart of bitcoin showing five waves down from the all time high of $69,000 in November, 2021, followed by an ABC Wave 2 (circle) retracement of 61.8% into the end of last week. On Thursday and Friday, BTC fell $6,000, from high tick to Friday close (market close), for about an 8% plunge. On the heels of SEC approval for 11 spot bitcoin ETF,'s this is not bullish. In fact, moves like this have a way of being a harbinger of more of the same over the ensuing weeks and months, which could very well have us trading options on BTC (via BITO) again. Here is shorter term view of late week trading via a 30 minute chart: And our likely option vehicle: I am on the lookout for a low-risk entry to the short side as bitcoin, well on its way back to the mid $20K's, over the next few months with BITO down toward its Oct lows into the mid-to-low teens. TSLA Breaking below the Fib retracement zone does not bode well for near term prospects. The best case scenario is for a climatic fall similar to the Dec 2022 to Jan 2023 lows which set up the very best Buy Signal of the past few years - note up arrow just past Wave 2 (circe) low of one year ago, launching TSLA from around $127 in $299 in just six months. During thie 2023 run higher TSLA doubled two times, first from Jan-Feb and again from May-July. The key levels for such a low will be between $195-$205, i.e., we need a bottom somewhere before we can start looking for a fresh Buy Signal. The fear and doom surrounding TSLA shares are eerily similar now to a year ago, but there is room for more dread, so stand-by for another break below $200. GLD A series of waves 1-2 higher is suggesting the fourth opportunity in Gold & GLD. If the most recent Wave 1 high at at 193.18 gets taken out we will be adding calls as it would suggest a third wave explosion into the low 200's in the weeks and months ahead. It will likely coincide with a swoon in stocks and/or bitcoin, putting all three of these opportunities pretty much in line, ie., market and bitcoin collapse while gold becomes global asset of choice. Geopolitical conditions support this scenario, so we are once again watching the news (uggh), even when the market is closed. Bottom Line: Four option opportunities ahead; ten baggers all. Just two weeks into the new year and already four charts are popping out as potential ten-bagger option trades in the weeks ahead. The Thanksgiving-Christmas lull is giving way to volatile if not lucrative new year of opportunity. If the stock market holds up, TSLA is a dirt cheap stock poised to triple, but that is a big IF and I'm not expecting it. Bitcoin and TSLA are both suggesting a worst case scenario, spurred by geopolitical mayhem, lays ahead. In the world of option trading lulls are usually followed by big time trades, just as trader psychology ebbs away from taking risk, the best trade of the year comes knocking. My message to everyone: Be ready.
