Clarity is the hallmark of this Wave 5 Sell Signal which was generated at the close of trading yesterday. What I like about this is the Fib extension projecting a target of $165 for Wave 5, while merely testing the Wave 3 low would take price down to $169, both targets some $30 below current prices. That juices the reward side of the risk:reward trade profile vis a vis the Jun at, or out-of-the-money puts (see table below). AAPL 2 Hr Wave 3 took AAPL from $250 to $169, a decline of $80, or 32%, over six weeks. Wave 5 projects to mid-$160's, minimum. Jun Puts For any put on this table: Risk 50% to make potential 4X to 6X as Wave 5 unfolds over the next 6-8 weeks. We will track the Jun 20th $175P. Also note that a $30 decline in AAPL would not bode well for the general market, so consider this signal a red flag for market weakness ahead. The FOMC meeting tomorrow could inject new volatility into the market, expectations are for a nothing burger, let's see if that holds. We could have some more new trades post the FOMC press conference.
