A blast from the past: Feb 20, 2020: Sell Signal Pending: EEM on a close below 44.00; currently trading at 43.55 Option if triggered: April 17th $44P (currently:1.30-1.35) Result: March 23 EEM hits its low for the move: $30.09; April $44P = $14.00 -------------------------------------------------------------- SICK SPY - 30 minute Pattern recognition set-ups as clean as this one are a sight to behold. If we can't pull the trigger on an opportunity like this, what are we doing here? SPY closed Friday at 282.73. A half-hourly print below $281 generates a Short-Term Sell Signal, but in the context of the larger patterns of the S&P, Dow (DIA-Daily chart below), Nasdaq and Russell 2000, this signal, if generated, could be the kick-off and resolution of the entire Elliott Wave pattern that we have been following for the past month: A swift 3rd Wave decline below the March lows. DIA - Daily As indicated on the EEM chart below, a close Monday below $35.00 puts EEM in the same structural set-up as it was on February 20, 2020. The Jun $35P is trading around $1.75-1.80. We added some Jun series options to both the PRO and Premium portfolios near the close on Friday. If things unfold as these charts suggest, hard down next week, than May puts held in the portfolios should do very well. If it takes a little longer, the Jun positions will serve as a reliable back-up. Make no mistake, the bet here is on the downside and we've been wrong before. But as showcased at the top of this Update, we have also been right before. Meet back here on Monday.
