This is a "Key Week" for news as the FOMC makes its first pronouncement of the new year on interest rates Wednesday, while some big earnings numbers are due out from MSFT and GOOGL today and AAPL, META, & AMZN on Thursday. By the time Friday rolls along, the market will likely have spiked in alternating directions, multiple times. That makes life for option traders treacherous, and it is not a time to be aggressive. It also sets up for major reversals that often occur under the guise of news events. TSLA TSLA is in the throes of building a base from which a fresh Buy Signal could trigger at any time. Note on the charts below how price has risen above the short-term signal line (240 Minute Trend Model). Ideally it will successfully test that line during the expected volatility this week and we will be back buying calls...but not until post-Fed. 240 Minute Trend Model TSLA moving toward a fresh Buy, maybe as soon as this week, but not in front of expected FOMC volatility. Next rally to above $300, so getting in anywhere close to $200 will do just fine. TSLA Jun 21st Calls - Just Thinking Aloud IWM: Sell Signal Still Pending Still buying Mar 15th Puts on an IWM close below 194.00
