SPECIAL TRADE ALERT: IWM Sell Signal triggered on the close Friday. We awoke Saturday morning to geopolitical chaos. A military coup is unfolding in Russia. How it will affect the global financial markets may present some enormous opportunities for option traders in the weeks ahead. In which direction is unknown, for now, but this is where our Blue Line Trend Models come in most handy. No large move in either direction can occur without a red arrow (Sell Signal) or Blue Arrow (Buy Signal) being triggered on the Intermediate Term - Daily price bars - Trading Models. We will follow them closely in the days ahead, and if and when they trigger, option trades will be recommended, starting with a fresh IWM Sell Signal, as set out on the chart below. Bottom line, if something big is imminent, we will be triggered into the right side with highly leveraged trading positions. Anything less than a 5X return would be disappointing, with 10X returns being more likely. IWM Intermediate Term Trading Model Option Recommendation Buy IWM Aug 18th $175P (2.86-2.89) with a 50% trailing stop. Targets by or before expiration: IWM <150.00 - $175P > $25.00 (+8X) S&P 500 - Guest Chart Our own SPX/SPY Trend Models are teetering on Sell Signals, but as of Friday's close no red down arrows yet. Events in Russia may affect all of our models come Monday's price action, including VIX. Stay close to website for any Special Alerts. TSLA We trade TSLA independent of our big picture trading models. In this case we have been monitoring stop levels all this past week, with the first and most aggressive stop on a close below the ATR line, currently @ $248.00. Other stops are at a 50% trailing stop as per the Sep 15 2023 options. Longer term calls can be held through hell and high water, or exited as per 50% trailing stop depending on individual preferences. If stopped out there will be more opportunities to re-enter TSLA calls in the weeks and/or months ahead. Best TSLA Video of the week - Ron Baron on CNBC - analysis.
