Near Term Trade Management Coming after this holiday shortened week there will be three full trading weeks until Dec 16th monthly expiration, six weeks then into the end of the year and a total of nine weeks to Jan 20 monthly expiration. All three of these respective periods hold the potential for the onset of a broad based stock market decline. As outlined in recent posts to both the PRO and Premium Trading Services, sentiment and pattern recognition are combining to generate high probability directional signals to the downside. When these odds become compelling, good trading results often follow. Volatility - VIX, VXX & UVXY Any new UVXY calls will have to be day-to-day, pending sufficient evidence that a momentum spike is developing. UVXY calls can achieve triple digit returns per day and do so for consecutive days. Watch this site anytime UVXY rises by 5% to 10% in a day, it will be strong evidence that the spike has begun. ETF Index Puts The chart patterns are setting up new key levels below which probabilities skew toward much lower prices into the next 1-2 months. As those key levels are taken out new put positions will be triggered. This strategy keeps our total commitment to the decline on a staggered entry basis that applies to both strike prices and expirations series. This week and next, its Dec 16th expiration and/or a split between Dec 16 and Jan 20. Once past November, we will be focused laser-like on Jan 20. Recent QQQ Trades These two positions were added when QQQ closed below 285 last week: IWM The next major add is an IWM close below 175.00. Any break below 175 intraday is a trigger, but should be held overnight only so long as the break below 175 holds into the close. New adds < IWM 175 IWM Dec 16 $180P (4.20-4.25) IWM Jan 20 $175P (4.70-4.75)
