Dangerous Times

Charts or headlines, which are more dire this weekend? The latter change hourly, the former are locked in from Friday's close, so let's start with those. 


This wave count represents what I consider to be the "worst case" scenario for stocks, i.e., a Wave 3 of 3 down as the opening salvo of a broad and deep bear market into the middle of this year. Looking at the world headlines this morning, that seems about right. In the trading service we did not know that the world would be drawn into a war in Eastern Europe or that Russia and nuclear weapons would be on the table. We only knew that the price patterns were setting up for a top of major significance in early January. 






We also were alerted to new uptrend in interest rates, energy prices and inflation, so we bought some calls in USO and OXY

Crude Oil - Fibonacci Projections





Now there are a couple post-Covid disasters just waiting to get picked off. Without going into details, of these two companies, one is toast and the other will survive, but just barely and with the help of the U.S. Treasury. Those headlines are only now just beginning to see the light of day. Much more to come later this summer. Both stocks are headed much, much lower. As both charts suggest, we are not done trading these down




This is a PRO Service special pick from early January. We've already taken profits rolling over from Feb to Mar puts and are holding out for more. It's no too late. GM is a broken stock.


Bitcoin is in a Good News: Bad News dilemma; the good news is that the latest abc correction looks over and a fresh five waves up is due next, possibly to new all time highs. The bad news is that if the wave (c) low of 32,900 gets taken out, so does a 2-year trendline, suggesting that there is no more upside and a lot a lot of downside. 


We are set-up already for the next two weeks of March, but will start rolling into April in about one week. Expect a slew of new trades, short term (PRO Service) and intermediate term (Premium Service).  


"To win the game, make sure you understand why you're in it. The big moves in markets only come once or twice a year. Those are the ones which will pay you for all the work, fear, sweat and aggravation of the previous eleven months or even eleven years."

- Robert Prechter, on trading options, circa, November 1986