Wave 3 Down: What To Expect Into A Crash Window

S&P Impulsive Pattern----> Wave 3 Begins

Impulse Wave 1 down took place during the first six months of 2022, into the mid-Jun lows. An eight week Wave 2 rally has taken the market into what appears to be the end of a typical 61.8% Fibonacci retracement as of August 16th. Next is a Wave 3 down, which ominously includes the seasonal crash window of Sep-Oct. Looking at our trading during Wave 1 down, i.e., all of our trades put on between January 1st and June 30th, 2022, we can expect to do AT LEAST THIS GOOD as Wave 3 down unfolds:

Blue Line PRO Trades: First Six Months of 2022


Blue Line Premium Service: First Six Months of 2022


 Past Performance is Not A Guarantee of Future Results

That is not just a legal disclaimer, it is also food for thought. If the above referenced maximum trade returns were generated by price movement during a first wave down, what might reasonably be expected from a third wave down? If you are familiar with Elliott Wave Theory than you know that third waves are, "wonders to behold." That's bad news for the stock market, but good news for anyone buying put-options in front of a third wave decline. 


PRO vs Premium

Blue Line PRO had 41 trades in the first six months of 2022, on average about 7 trades a month. Blue Line Premium Service  had 24 trades during the same time period. PRO subscriptions include a subscription to the Premium Service,* accommodating more active traders with a total of 65 potential trades in six months.  We consider PRO a short-term service with more aggressive trades, while Premium in an intermediate term service with a  slightly longer term orientation to option trading. PRO is updated almost daily, while Premium is updates 2-3 times per week, both on the website and through email notifications. 

*Since our special promotion is for a 99% discount, it makes sense sign up to PRO and decide before the end of the your first month if you want to remain with PRO or switch to Premium. All it takes to make a change is an email to customer service.

There are four actionable trading signals on this chart of our QQQ Intermediate Term Trading Model, two Buys and two Sells. The current operative signal is a Buy from July 20th. The next signal will be a Sell and it will come at the end of a Wave 2 counter-trend rally, in front of what is expected to be a relentless third wave debacle to the downside, and in front of the seasonal Sep-Oct crash window. We will be all over this new and pending signal for our subscribers.