While we wait for that Armageddon trade, i.e., major indices taking out their March 3rd lows, one stock is already doing so: GDX (Gold Miners ETF) GDX (Gold Miners ETF) This is a familiar pattern that we have been trading for the past 18 months, only this one is to the downside. Looking for a move to between initial support ($190) and major support ($180) before April expiration. GDX Apr $100P Triggers on any close below $102.50 (Tuesday's low print) Breakdown Alert We are seeing some initial weakness across the major indices today, but will take QQQ/IWM/SPY taking out their lows from March 3rd, to turn the short-term mega bearish. If those lows are taken out this week, we want to add April puts, one or more options as listed: If QQQ breaks below 592 - Add Apr 17th $550P If IWM breaks below 253 - Add Apr 17th $245P If SPY breaks below 670 - Add Apr 17th $640P Those levels may seem far away, but they are only one nasty headline away from spooking this market. Declines of this magnitude will almost by definition not be orderly. Be ready. PRO Options The XOM (Exxon) calls from late January look to be our big winner for March expiration. Note the 250% trailing stop for exiting early, if hit. Late Thursday Chart Add: DJI in Free-Fall DJI 180 Minute DJI is close to taking out its Tuesday lows and if so, can the other indices be far behind?
