To repeat yesterday's IWM Alert: If a new down leg is imminent it will manifest first in IWM and a new red down arrow will appear on this 240 minute model. If it is triggered this week we will go after the IWM $170P or $165P, either Dec or Jan (or both) monthly expiration. Standby on any downside volatility, i.e., check website for special Alerts. Otherwise, we will wait for the market to finish with its current three-wave counter-trend retracement. The next wave down should not be missed. In addition, I sent out a special Alert to the Premium Service yesterday with a Key Level trigger of IWM < 164.00. Trade Alert: Accordingly we have two entries to new IWM puts, either a new red arrow trend signal appearing on the 240 minute model (below) or a drop below IWM 164.00. IWM 240 Minute Trading Model Trend Model Sell is now "Pending" - meaning price is below ATR at 170, if it stays below for the rest of today, expect a Sell as early as tomorrow. A test of the Wave II highs is still possible before a plunge to new lows, so dollar cost averaging into Jan expiration is a viable alternative for building longer term positions. Option Trades IWM Dec 15 $170P (3.80-3.81) or IWM Jan 19 $165P (3.45-3.50)
