The market is in an extreme reversal mode just waiting for a trigger to ignite a 20% drop. This is huge profit opportunity for those who wait and have the requisite patience for key levels to be broken. Yesterday's Fed, "sounds like a pivot [but is not] rally has not changed our previous key levels of QQQ 280 and IWM 180 for new short positions via index puts. Market action today and tomorrow will determine if we can raise those trigger entry levels if they are not hit by Friday's close. Below are charts of SPX, QQQ and VIX. The same patterns and technical conditions exist now as did when the previous arrows on the charts were made. Will the resulting market reversals be any different? Yes, they will be steeper as every point of the rally up from the mid-October lows get retraced. As this is Dec 1st, we are now recommending "next month" January 20th options for any new positions. SPX QQQ VIX VIX 20 or below has been a reliable "Go Long Volatility" level all year, as all such instances have resulted in 10-15% market declines over ensuing 4-6 weeks.
