The Count No One Is Seeing

I threw out my IWM wave counts this weekend to start fresh. It didn't take long. All that's needed is one big down day next week and this EW pattern becomes not just probable, not just likely, but virtually guaranteed. What's more, it doesn't have to unfold next week, it can take as long as a month, but that's not likely either, Just in case I'm including some longer term options in the playbook. Once this market blows apart it expect multiple fast market condition days. And if I am wrong. well we are holding calls in TSLA up the wazoo, some with still 60 days to go and already up 800%, so there is that. 

IWM - New Wave Count 

This EW structure suggests a wave 3 of (3) is next and if the market turns down down consistent with the forecast, we will be trading the some options on this page, looking for 5X to 10X to 20X returns going into the 4th quarter of the year. 

The expectation is for IWM to drop like a pound of bricks into the 120's be the end of the summer. These Sep puts will be $60 in-the-money. What is selling for $200 this weekend will be cashed out at $6,000 after Labor Day. 

Blue Line Premium & PRO Subscribers: The Key Level in the DJIA in this weekend's update is all that needs to be hit to trigger this plan of action. See Top Pending for details. 

VIX - One year and counting

This year long VIX chart deserves a lengthier explanation, which will be covered in the Blue Line Trading Premium and PRO Updates. For our purposes today, i.e., to generate new subscribers to Blue Line Premium and Blue Line PRO, suffice it to say that a spike is long overdue, minimum expectation is to 30, more than a double from current levels. What would that mean for calls?

If VIX runs to 30 in the next 68 days, the Sep 20C highlighted in this table would have an intrinsic worth of 10, about a 6X increase. If it happens sooner, a 10X increase is likely. We are waiting for one of two triggers, a VIX Trend Model Buy or simply a close above the ATR line. Thing is, if we get both the spike will be eyeing one of the higher targets before Sep 20th. Needless to say, this chart is on my screen throughout the trading day. 


For aggressive traders we turn to the August expiration table where a spike to 30 easily tags a 10X return, but we would be looking for double that under the right conditions.