From last Friday's Update (Christmas Weekend): "Next week takes us 4 weeks until Jan 20th expiration (17 trading days). Key levels are now yesterday's lows, they will be watched by a lot of traders, trading bots and algorithms, when they fall --> acceleration down, like off a cliff down. Be prepared." Another Winter Storm Named Elliott These charts are consistent with a hard down future, but do allow for a day or two or even three of meandering higher, all consistent with the bear market using light holiday trading to reset sentiment gauges. If so, January will be gangbusters to the downside but the building number of (nervous) shorts need to be thinned out first. A rally this coming week would not concern me, but the beginning of another hard down leg would - it means the conditions are even more bearish than I have been surmising, the multiple third waves are erupting before everyone is back from holiday vacation - and before I can get on all of my shorts, and long volatility calls. DJI This DJI chart above sets the tone for this coming week. Either a hard down week out of the gate, or, some more drifting higher into the Fibonacci retracement zone before the bottom falls out. First target is 5,000 DJI points lower, about 15% and it will be fast. It will be a precursor for 2023 whether it comes in the last week of 2022 or first week of 2023. QQQ 30 Minute QQQ Long Term These QQQ charts paint a bleak picture not only for the index but for TSLA as it continues its decent into Twitter-hell. The ship will reverse in time, but the century mark may be too juicy a target not to break before the bleeding is over. From whatever price low may be out there for TSLA, the next leg up is.a Long Term Wave 3 of 3 higher, and all time new highs by mid-decade are not just doable, but likely. More on that future updates, as 2025 call LEAPS keep getting cheaper and more leveraged as to what's coming in the year ahead. TSLA Long Term Next Week Next week can land anywhere from uneventful to a hard down manifestation of third waves down at multiple degrees of trend, If the latter, stay close to these updates, and if the former, be prepared for January to make up for lost ground.
