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There’s a pattern I’ve been tracking for years that keeps proving itself over and over — and it just completed on a couple of popular names I’ve had my eye on.
It’s an absolutely beautiful correction, and when it hits what I’m looking for, it’s one of the most reliable setups I know for catching major bottoms.
The pattern is based on Elliott Wave theory — a three-wave ABC correction that unfolds in very specific proportions. You get an initial move down (Wave A), a bounce higher (Wave B) and then a final move down (Wave C) that typically hits the 61.8% Fibonacci level.
Once all three waves complete with clean proportions, that’s when the shift happens for me. That’s the point where I stop watching and start going after the trade again, transitioning from analysis into action.
Now let’s talk about the stocks…
Why I’m Turning Bullish on Robinhood Markets (HOOD) After Months of Staying Away
Take Robinhood Markets (HOOD) as an example. Back in October, I was completely bearish on this name. I told my Market Masters co-host Jack Carter that I wouldn’t touch it with a 10-foot pole — wouldn’t even touch it with his account when he asked about it.
The stock pulled back exactly like I expected. And now I’m re-engaging. The ABC correction completed with perfect proportions, and that changes everything for me.
To position for the move higher, I’ve been selling premium aggressively. I’ve taken the $67, $68 and $69 strike puts and rolled them forward for about $1.50 in credit for a week. The premiums have been juicy, and rolling the positions keeps me collecting income while the setup develops.
That’s the beauty of being patient with a pattern like this — when the correction completes, the opportunities get real fast.
Versatility of the Pattern
This setup isn’t limited to one stock or time frame. The same clean proportional pullback structure shows up across different names and across different market environments. When you learn to recognize it, your playbook expands dramatically.
It’s showing up right now on Direxion Daily TSLA Bull 2x Shares (TSLL) as well. I got assigned shares on Friday morning and immediately sold the $20 strike puts against the position. Even after assignment, the steady premium selling keeps pushing my cost basis lower.
What stands out on TSLL is how proportional the moves have been. We had a big move up, a pullback, another move up and another pullback. Both pullbacks were nearly identical in size, which is exactly what I want to see at the end of a correction.
And when you see proportional pullbacks, you generally expect a proportional move up next. It’s not wishful thinking — it’s how these patterns tend to play out. The key is staying patient until the setup fully completes, then stepping in decisively when the probabilities tilt in your favor.
Jeffry Turnmire
Jeffry Turnmire Trading
I host my Morning Monster livestream at 9:15 a.m. ET each weekday on YouTube, and then 30 Minutes of Awesome at 5 p.m. ET each Tuesday!
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I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.
I’ve been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it’s the Eagle Scout in me.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Wall Street’s Been Routing Its Orders Through the Dark Pool
I found a way to trail them using a special class of securities called Supercharged Tickers.
Even better, I have a 100% win rate so far, and right now I’m looking to target the next opportunity…
We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading past performance is not indicative of future results. From 2/5/2025 to 02/12/2026 the win rate on live closed trades has been 100% with an average return of 27.8% and average hold time of 18 days.
