For the first time since the Oct 2023 lows there are a plethora of stocks setting up for moderate retracements at best, major reversals at worst. That doesn't guarantee all or any of them will trigger, but when one or more due we will want to be buying out of the money puts, going out 2-4 months depending on the individual stock. Even assuming an ongoing bull market (not expected) a hiccup is due. My goal is minimum option returns of 3X, but would prefer those that have 5X to10X potential. January wasn't a good month for our trading models, but that was then and this is now. AAPL One would have expected a Buy Signal toward the end of last week, but instead, it looks like new lows are due into the mid-160's. We need a close below 185.00 to trigger the trade. Going back to January 2017, this trading model's signals are 52% winners, but the winners twice as large as the losers, so the numbers favor taking every trade. BA A close below 205, or better yet, 200, triggers a short with an initial target of 175. Much lower prices are possible, so we may want to go out to April on this one. MSFT Another one of the market darlings survived earnings last week, the perfect fake-out for bulls. A decline now below round number support @ 400 suggests 370 possible in 30 days. Note that of these three short candidates, MSFT is the only one not already on a Sell Signal. When it triggers (down red arrow), I'll post the trade here. The Big Picture That's three of my favorites ready for a fall. There are more, but am saving a couple for the PRO Service on shorter term time frames. As is often the case, I'll add the best of the lot to the Premium Service once the longer term set-ups are complete and confirmed. In addition we will have fresh IWM puts in both services that are holding their own. Event risk is high, the world appears to be going to hell in a hand basket and then, there is the US election. Maybe the worst is holding off until after the Super Bowl, our last great national holiday. Finally, we have been right to stay away from new TSLA calls, respectful of the Jan 5th Sell Signal. Everything is starting to point to something big and swift to the downside, then a recovery. TSLA - Daily Trend Model Big Picture Trade: IWM If this IWM chart looks a little different its because I've taken the liberty of adjusting the targets for Waves 3 and 5 to one Fibonacci Extension degree lower than on the previous charts. Likely or not, its possible. Longer Term Expiration & Strikes
