A bullish stampede made short work of our years-old Dow target at 13045 yesterday, telegraphing even higher prices in the days and perhaps weeks ahead. The target was intended not as kamikaze number for permabears, but rather as a logical place to short aggressively using a tight stop-loss. This we did, laying out shorts not only in the mini-Dow futures, but in the Cubes as well. (A third recommendation, to buy puts in the Diamonds, was canceled when the underlying issue slightly exceeded our rally target; and a fourth, a short in Goldman Sachs, has yet to play out.) So cautiously did we approach yesterday's opportunity to get short that the total theoretical loss for anyone who took all of the trades advised would have been under $100. Surviving to play another day is an important part of the game, and this we have tried our utmost to ensure. We view the breach of the 13045 Dow target not as evidence that Hidden Pivots do not 'work,' but rather as very reliable evidence that the bulls' all-but-insatiable eagerness to buy stocks is still not spent. Now, what to do? Usually, when a rally target has been exceeded, we simply slide backwards along a stock's price history to find a lower point 'A.' By definition, this will give us a higher target on the other end of the pattern. In this instance, however, the original point 'A' was so clearly the correct one demanded by our 'one-off' rule that there didn't appear to be any alternatives. However, yesterday's surge past the target has caused us to take a fresh look to determine whether a further, upward target adjustment can be made without breaking any important Hidden Pivot rules (of which there are just a few). Turns out, there was a single
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