KRE - Wave 5 Sell Pending These two KRE charts illustrate one of our favorite pattern recognition trades, three waves down complete and a fresh Trend Model Sell Signal in conjunction with a break of the 4th wave channel. The charts speak for themselves..this is a powerful combination of dual triggers: KRE - Breakdown of Wave 4 Channel KRE - Fresh Trend Model Sell Signal One tick below last week's low of 42.81, triggers this option trade: KRE Oct 20th $42P (1.45-1.50) Target: KRE < $34.50 $42P > 7.50 Stop: KRE close above $48.00 (or -50% trailing on option) NVDA Earnings - The End if AI Mania? Anyone who jumped on the NVDA bandwagon post earnings is underwater as of Friday's close. Based on our trend model, a close below ATR @ $440 will make put Oct/Nov/Dec out-of-the-money NVDA puts look awfully tempting as even a mild Fib retracement of the YTD gains could generate significant option returns. If NVDA closes below $440 next week that red arrow Sell Signal will be confirmed, and in light of the forecasted deep autumn dive in the stock market, this may be one of the great shorts of the year. Stand-by for that new trade, if and when $440 is broken any day next week. NVDA Intermediate Term Trend Model: Sell Pending NVDA - Another View TSLA The last four days has seen TSLA oscillate above and below its ATR (Average True Range) price level of $235. The next big move begins when price decisively moves above or below that key level. The Intermediate Term Trend Model is still on its late July Sell Signal so at least for the Intermediate Term, benefit of the doubt still lays with lower prices into Sep-Oct. Nonetheless, a move above $240 will likely generate a fresh Buy which we are prepared to jump all over. Leading call candidates: Dec 15th $280C up to Dec 15th $320C. TSLA Intermediate Term Trend Model Range last four daily price bars $228-$238 - Looking for a breakout - one way or the other. ATR acting like a magnet --> then a catapult.
