Two Minute Summary Video: Deep Dive, Pending
This was the final paragraph of the Weekend Update that went out to Blue Line Trading System subscribers on Saturday:
Price patterns are set-up for a hard down event in stocks and/or bonds and any hint of it unfolding next week, i.e., new lows in IWM, is an opportunity to go all in, looking for exponential returns in the weeks ahead.
I'll share a few of many the charts that accompanied the update:
QQQ 120 Minute
IWM Daily
Although IWM 200-180 is expected, we could be one degree of trend off and if so, the next Fib level support after 180 is 150, just below the Oct 2023 low. At that level, our recommended Mar IWM puts, currently trading at about 3.00, would be 50 points deep in the money and up about 15X.
One of the reasons for this dire prognostication:
US 10 Year Treasury Yields
Yes, that's a 7% yield projected by the Fib extension tool. Do not underestimate the damage that would cause to the economy and capital markets. It would make the low price projection shown on the QQQ chart above but a speed bump on the way to a much lower bottom sometime later this year. Don't even think about how much money you could make trading that size of a decline.
Just don't.