As The Great Recession tightens its grip on the urban slums of the U.S. and Europe, a darker side of social networking has begun to emerge. Last week, the civilized world was appalled to read about rioting British “youths” tweeting their friends and comrades-in-arms to join the fun. “We need more MAN than Feds so Everyone run wild, all of London and others are invited! Pure terror and havoc & Free stuff…just smash shop windows and cart out da stuff.” Ahh, “da stuff!” Such swag as has seldom been seen in London’s dismal rookeries: bowler hats from Locke. Brigg umbrellas. Church shoes. London’s bobbies should have no trouble picking out the perpetrators on Monday. They’ll be wearing bespoke suits that fit as poorly as O.J.’s infamous glove. Yobs will be firing up Cohibas with (unmonogrammed) Dunhill lighters, broad-tossers’ wrists will be adorned with Patek Phillipes, and louts will be ordering up Dom Perignon by the flagon in Piccadilly taverns. » Read the full article
The rally target at 1227.75 that was in play in Friday is still in play. As I’d noted earlier, choppy action has brought the futures to within two ticks of the 1187.25 midpoint associated with that target. The fact that that midpoint was precisely achieved by the day’s two failed rallies suggests that the 1227.75 target will be useful to us. However, because the target is by now perhaps too well “advertised,” I’d suggest using camouflage on the 15m chart or less if you plan on using this high-odds Hidden Pivot to get short. In the meantime, because there is 50 points of implied upside if and when the futures break decisively above the midpoint, using camo tactics to get long is strongly advised. Initiating bull trades near these levels may be easiest for Sunday night-owls, since the September contract created the kind of tedious chop on Friday that tends to leave our trading competitors waiting for “something” to happen. Our specialty, of course, is using impulse legs to alert us to the very first sign that something is about to happen. Want to learn to use the Camouflage Trading Method yourself? Click here for information about the October 5-6 Hidden Pivot Webinar.
Tesla got short-squeezed to within 28 cents of the 86.72 target I’d proffered early Monday morning, but a second-wind rally to 88.00 suggests it’s got eyes for 104.44, the ‘D’ target associated with the first number. It can serve as a minimum upside objective for now, implying that all trades between here and there be positioned from the long side. We’ll plan on buying weekly puts if and when the target is reached, provided it happens before Wednesday of the given week. Please note as well that a lesser Hidden Pivot at 94.19 (see inset) has the potential to stop the rally cold and can therefore be used for spec camouflage shorts.
All signs point higher at the moment, but even Google will have to top somewhere. My best-bet for a short-able apex is 929.78, the Hidden Pivot target of a well-defined ABCD on the monthly chart (see inset). You can try shorting with camouflage at that number, or at the D target (in purple) of the lesser pattern, but until then all trades should incorporate a bullish bias.