It’s been a long time since I’ve felt so energized about the stock market. Bit by bit, things are truly beginning to break down. I am loaded to the gills with very large put positions on 16 different instruments right now. Here are eight of them, along with some brief commentary. I’ll offer up the other eight in a similar post tomorrow. As usual, click on any chart for a super-sized version.
Caterpillar (NYSE:CAT) just needs to break that horizontal, then it’s bombs away. Indeed, many, many ETFs and stocks look just like this: specifically, a complete topping pattern, but then an even larger topping pattern if the next horizontal can be busted.
Same deal with Darling Ingredients Inc (NYSE:DAR).
John Deere (NYSE:DE), as you might suppose, is extremely similar in form to Caterpillar. Mind you, these options expire no earlier than Oct. 15. I have tons and tons of time for big profits.
Of all 16 charts, the Dow 30 “diamonds” is the least interesting. It is range-bound and turned away from its lifetime peak on Friday.
Dine Brands Global (NYSE:DIN) has shown it has the capacity for big falls. We have cleanly reversed on this.
The MSCI fund, symbol EFA, is about 85% done with its own topping pattern. Break that green horizontal, and it’s doom-a-palooza.
Likewise, eHealth Inc (NASDAQ:EHTH) is about 85-90% done with the completion of its own gargantuan top.
Foot Locker (NYSE:FL) has been a tough nut to crack, but it finally shattered its trendline and horizontal lines this month. Hurray!
