This, special update is born out of an almost 800 point DJI rally (while UVXY was virtually flat on the day) that is now at or approaching a major reversal level. What comes next will be historic, whether it be next week, the week of the FOMC meeting (Nov 1) or the week after that, the mid-term election (Nov 8) week. There is a little bit more room for the stock market to rally early next week, but it pales in comparison to the depths of the decline that is being projected into the end of the year. DJI - Daily Wave 3 of (3) due to start anytime; no later than first week in November SPX - 4hr IWM 2 hour UVXY - Higher Highs = Subtle Strength Sep 16th UVXY Buy Signal Closed Out @ 56% Profit TRADE MANAGEMENT Newly Recommeded Positions: SPY Nov 18th $365P (7.40-7.50) and/or IWM Nov 18th $165P (4.90-4.95) We have been rolling over Oct 21st expiration positions to Nov 18th for the past two weeks. If still underweighted going into the expected volatility ahead, these two SPY and IWM puts closed Friday well positioned to benefit from the initial thrust of Wave 3's decline. There are four weeks to go into Nov 18th expiration, with probably less than 1-2 weeks until a new leg down commences taking all indices below their respective Wave (1) lows. I have at least two, if not all of three of indices represented in my trading portfolio, including: QQQ, IWM, SPY, IYR, as well as UVXY calls, either "next month" (Nov 18th) or the discussed Jan 20th Special Situation strategy...or both. Note: on Friday IYR was discussed, with attractive expirations going out as far as 90 days: Nov 18th, Dec 16th and Jan 20th. If fully loaded in Nov expiration, the Dec and Jan IYR puts offer great time-line diversity. GUEST CHARTS (courtesy of Mac10)
