This one-hour demonstration from Friday (2/25) begins with a look at some key concepts related to the Hidden Pivot Method and to the “camouflage” trading technique. We then segue to real-time charts, looking for actual trading opportunities in such popular vehicles as Comex Gold, E-Mini S&Ps and the Mini-Dow during market hours.
From the monthly archives:
February 2011
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Rally patterns in all time frames are bullishly aligned and point on the weekly chart to at least 37.00 (A=17.455 on July 30, 2010). More immediately, Sunday night’s buying action appears less than exciting, although it is still leaving hand holds for camouflage buying on charts of 10-minute degree or less.
Sunday night’s first, probing thrust has fallen shy of a seconday peak at 1416.50, hinting that bulls are lacking in gumption as the new week begins. In any event, structural resistance at 1426.30 still looms as the most important challenge for buyers over the near term. Night owls and camouflageurs may have a chance to leverage a bullish change of heart if the futures pop faintly above 1416.50 (see inset) and pull back into a b-c correction.
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A rally target at 57.96 remains valid, so we’ll look to short it by buying four March 57 puts. You can determine their fair price by monitoring the bid/asked spread as the QQQs closely approach the target. A stop-loss at 58.12 is still advised. ______ UPDATE (9:36 a.m. EST): We bought the puts for 0.62. Stick to the 58.12 stop-loss for now. ________ FURTHER UPDATE (2:05 p.m. EST): Sell for 0.80 or better two of the four puts acquired earlier this morning for 0.62. We’ll carry the two that remain using 0.44 as our new cost basis.
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Join me at 11 a.m. EST for a Hidden Pivot demonstration that will examiner possible trading concerns that we are likely to encounter if the long-term bear market has resumed. Click here to register.
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Structural resistance at 1426.30 still looms as the most important challenge for buyers over the near term. In the meantime, here’s a view of the monthly chart that we haven’t seen before. It yields a rally target of 1512.30 for the April contract, but it also hints of a possible struggle to attain highs above that number.
