The DJIA tagged 50,000 on Friday, closing at 50,115. Course of action: So long as the DJIA stays above 50,000, expect some muted follow-through. However, should the DJIA lose 50,000, i.e., trade below this historic level, expect a rapid rush to the exits, as suggested by the SPY pattern in the charts below.
Strategy
If the DJIA loses 50,000 next week, any and all of the SPY put options are suitable to ride a downswing into mid-March. If there is a "crash," all of the options below could be deep in the money well before expiration. I personally will use a -50% hard stop on my put position, aiming for a multi-bagger pursuant to any significant market weakness in the days and weeks ahead.
Longer Term Pattern: SPY Weekly
Primary Wave 4 began last week, targeting 550-520
Intermediate Term Pattern: SPY Daily
Looking for five waves down over the next 60-90 days.
Short Term Pattern: SPY Hourly
Hard down imminent!
Place Your Bets
High Risk:High Reward
Moderate Risk: Moderate Reward