About 90 minutes before the close today Jerome Powell will likely move the markets with his comments on interest rates, inflation and the economy. I'm only interested in a downside reaction since that is where the huge potential is going into the end of this month and early January. In addition to the DJI "throw-over" trigger described yesterday , I'm also looking at IWM for an early entry to the short side. Below is the 240 minute trend model and its key level for entry into Jan 19th IWM puts. IWM - 240 Minute Trend Model A hard break, either by distance or a close below 185.00 and I want to start accumulating the Jan 19th $180P. Any of these Jan 19th puts will do, from the $185 strike @ 3.06 to the $175 strike @ 0.75. I've settled (for now) on the $180P currently @ 1.57. IWM has immediate potential to drop 20 pts very quickly, but it has to close below $185.00 first.
