Stocks In this smaller time frame (45 minutes) the Dow is mired in a parallel channel that looks more like a top than a consolidation poised for new highs. The top of the channel is about 35,200, the bottom at 34,870. In-between is wait and see. If the bottom falls out this will be a busy week for us. Tesla The 2-day trend model has had only three signals in the past year. They are embedded on the chart with three triangles, two blue (Buy Signals) and one red (Sell Signal). These trend signals are too long-term oriented to be of practical use in trading options. Nonetheless, a week ago the model generated a Buy Signal which is now supported by price breaking out of the six-month consolidation of the 2019-2020 run-up from $70 to $900. It had retraced a Fibonacci 38.2% from the January $900 high, bottoming in the mid-$500's about a month ago. The immediate target is the old high at $900, and in lieu of a stop (on my 2023 LEAPS) I am just going to buy puts on something else if the market weakens and takes TSLA down along with it. There are plenty of other stocks and indices that would take a beating in a bear cycle. Strong hands on this one. Bitcoin The full moons are in white, the new moons are shaded grey. The price labels are placed in the 24-hour period surrounding each of these lunar phases. I've been calling it a "two-week cycle," but for short-term option traders, "lunatic cycle" would be more accurate. MARA Here is the same lunatic cycle applied to Marathon Digital Holdings, a Bitcoin miner with options. Looking at those Buy and Sell entry/exits it's a robust trading system. A two-week at-the-money call/put is an easy double on a 10% move in the stock. Using "lunatic cycle" Buy/Sell signals, how many 10% moves from entry do you see below? How many 20%, or more, moves? "Find something that works...then trade it." - A. Harris
