FOMC chair Jerome Powell will speak and answer questions today about 90 minutes before the close. Historically, he has moved the market, sharply, with his words. If so, there are two ways to trade it, aggressively, via May 16th options, or slightly less aggressively, going out to Jun 20th expiration. Just in case spooking equities is on the agenda, here is a quick and easy trade plan. First, let's evaluate the chart of the day: QQQ QQQ Hourly A turn down from current levels risks being the beginning of wave (3) hard down, possibly 100 points hard down. If that looks even possibly happening, we want be be highly leveraged to the downside via May 16th at-the-money SQQQ calls. The top chart is the big picture, the bottom chart a close-up and the first indication of a breakdown. Powell's effect on the market could be dramatic, but so could be this breakdown. May 16th $30C A safer bet that would be still be adequately leveraged is to go out to Jun 20th expiration with IWM Puts. Jun 20th $185P Again, we want to take one or both of these positions in the case of a market breakdown from current levels. If instead, the market goes higher, or does anything other than breaking down, stand aside. We will assess as per market reaction to Powell's words. AAPL - Update Move stop up to break-even.
