The Stock Market A few times a year the pattern set-ups are so bang-the-table clear that it merits an "all-in" on the trade in question. Such are the conditions in the stock market on just the second weekend of the new year. Yesterday I introduced an IWM trade as an alternative short (see Into The Close). IWM closed the week at 216.83 after printing a daily/weekly/monthly/yearly low @ 215.31. Let's make sure to put that position on with any new low for the new year, i.e., any IWM print below 215.00. Note: Added a Feb monthly IWM put expiration to the previously posted Mar monthly IWM Put expiration. IWM IWM Mar Puts More Aggressive - IWM Feb Puts New Capital - Allocate 1/2 to Mar and 1/2 to Feb. The deeper the dive next week, the more aggressive the allocation. Other Indices Noteworthy: A consensus third wave down at multiple degrees of trend. If hard down unfolds any day next week, be aggressive on the downside bets, whether SQQQ calls (Feb recommended) or IWM puts (Feb and/or Mar), or other downside vehicle of choice. QQQ 120 Minute DJI SPY Bonds & Yields TLT - Dec 11 Sell Signal I've added a 5th wave extension price projection to the EW count, which takes my previous range of 82-75 all the way down to the mid-60's. That would imply 10 year treasury yields above 7% (chart below), which seems inconceivable, except in the minds of deranged EW practitioners. 10 Year Yield In Summary Price patterns are set-up for a hard down event in stocks and/or bonds and any hint of it unfolding next week, i.e., new lows in IWM, is an opportunity to go all in, looking for exponential returns in the weeks ahead. Active Option Tables PRO Service Premium Service
