It's rare that traditional Elliott Wave Theory is in such agreement on what is probable in the immediate future, i.e., next week, so I want to highlight the "five waves up" consensus in orthodox application of the Elliott Wave principle. Note, my own application of EW is not so nuanced, but in general agreement that a top of some sort has been put in and it's down, possible hard down, from here. My own view of EW is set out in the QQQ chart below, but first, let's look at what orthodox EW says across four major indices: DJI SPX NASDAQ NYA The agreement in all of the above charts is rare, almost compelling, that an intermediate (at least 10%) corrective leg down is imminent. To address such a turn with an options strategy, let's turn to the same chart we have been monitoring daily since the turn of the year: QQQ Note the similarities with the above charts, a completed impulse wave, followed by what still looks like the beginnings of something larger to the downside which once it gets going, offers generous points in waves iii and v (circled) to much lower levels. A gap below the wave i and ii trend line in QQQ on Monday will trigger the expected move lower. SQQQ Hourly An opening gap down in QQQ would likely coincide with a breakout above 30-31 on SQQQ, with a quick move into the mid 30's likely. If so, check the website mid-session Monday for a special Alert, or just buy the SQQQ Feb 21st $30C or March puts just out of the money puts in SPY/IWM. Anything less than a QQQ breakdown, no action required. Individual Stocks TSLA TSLA continues to work off the leg up from last October as we are waiting for indications that Wave (iv) is over before committing to new positions. Its not there yet and in fact, price can drop further, but that elusive low is getting closer; patience, patience, patience. PLTR This is exactly why patience will pay off with TSLA. Remember this chart, it was from a post-earnings analysis I presented for PLTR just before the last earnings release. Sure enough, since the Feb 3rd report PLTR has been running up (+33% so far) with more to come if the previous reactions to earnings are any indication. As for our calls, it just takes one or two stocks like this to make our trading year. I'm shooting for double that many, 3-4 big winners in 2025. We may already be in one or two, with new names to come. PLTR - Premium Positions Later this year I expect to publish a similar trades table for multiple TSLA/TSLL positions. A wise man once said: Patience, patience, patience. HOOD This was another Into The Close pick (in case anyone is paying attention to where our big winners are first appearing on our radar). If the big picture EW analysis set out above is wrong and it's an extended Wave 5 up, up and away from here, HOOD is likely to be a big beneficiary, especially if Bitcoin can finally breakout to new highs. Two weeks into the calls and our calls in HOOD are up close to 50% (+170% in PRO Service HOOD calls) so I would now be inclined to move the stop up to about breakeven, not taking any chance of a winning trade turning into a loser. GLD We are still too early into this GLD trade to declare victory, so maintain a 50% hard stop on any call position. Acceleration up is due NOW and anything less would be a warning that something else may be happening, BTC If there was one chart that could tell the tale for February and March, Bitcoin could be it (notwithstanding QQQ as set out above). Below $92K or above $110K and we will be on trend with he appropriate puts or calls, possibly adding an individual stock or two to take advantage of the nascent trend. BBAI If $10, then $15. Option Tables PRO Service Premium Service
