Today's rally off of tempered employment numbers notwithstanding, we are waiting for the current sideways channel in SPX to breakdown before positioning more aggressively for the next leg down. SPX - Intermediate Term EW Today's rally does not change the big picture, it just delays the onset of the next leg down by another day or two and another few percentage points. Beginning next week, will be taking new option positions into Feb 17th expiration. Because the next leg should be the steepest and most volatile of the bear market so far, we want to be aggressive once it begins selling off. For now, we are looking at SQQQ as that aggressive vehicle. It doubled on three market legs down during the first year of the bear market in 2022, and it should lead the next phase lower as well. SQQQ Feb 17th $60C Any SQQQ trade above 58.30, this past week's high, will be the trigger to go long these calls, currently trading at bid 4.30 ask 4.40. No need to chase. This is a highly leveraged bet on a sharp decline in QQQ over the next six weeks. Minimum targets are mid-$80's on SQQQ and mid-$20's on the calls. SQQQ
