TSLA Tesla earnings on Wednesday: The shares are already running up from $650 in mid-August to to $843 on Friday, up 30% in a little less than two months. Get used to it. UVXY The S&P 500 VIX Short-Term Futures Index, leveraged. Long term chart shows a multi-month volume build, suggesting something is brewing underneath the surface. Potential here is for triple digit returns on UVXY and quadruple digit returns on UVXY calls. Heads-up: I am going after this one, maybe as early as this coming week. Risk only what you are willing to kiss good-bye with the understanding it may take a couple tries to nail it. I will be looking for quadruple percent gains...many quadruple. The Great Inflation and Oil Shock, 1973-1974, or, 2021-2022, or Both. Inflation is in the air, it's all over financial media and $5 gasoline popping up on the West Coast. Interest rates are rising and there are shortages of everything from meat to band-aids at CVS. Mix that all up and deja view its 1973-1974. What happened to the stock market in 1973-1974? This is what happened: I normally stay away from fundamental analysis, preferring instead to look for repeating price patterns to guide my trading. In this case however, the parallel is too compelling to ignore. The above illustrated bear market began in Jan 1973, but no doubt option traders started picking sides in the fall of 1972. If so, they were early, but right. Just was we are today. The Intermediate Term USO Trade The shorter-term oriented PRO Service bought USO calls via a special Alert on September 27th: USO: $52.90 Nov 19th $55C: $1.60-1.65 USO Target: $60+ Nov 19th $55C Target: $5.00+ USO closed Friday at $57.15 and the Nov 19th $55C closed at $3.45, for a gain on this trade in excess of 100% and, with still 4 weeks to go to expiration. The fundamentals are building momentum as well, so let's add an intermediate term version of this trade for the Premium Service: USO: $57.15 Jan 21st 2022 $60C (2.70) USO Target $65+ Jan 21st $60C Target: $5.00+ Stop: 50% ($1.35) On this 2-Day USO chart price is coming off of a Sep 23rd Buy Signal with enough momentum to carry it well into the mid-$60's or higher.
