Like Citigroup, Merrill’s next short-squeeze should be expected to sputter out at the Hidden Pivot midpoint of the ABC rally begun from 16.28 on September 16. The actual resistance lies at 31.81, and I’ll therefore suggest getting short very near that price using November 30 puts and a tight stop-loss that’s suited to your temperament. Although I doubt the stock has the wattage to push up to 38.80, the next Hidden Pivot above 31.81, we should plan on shorting even more aggressively there if the opportunity should arise. _______ UPDATE: The fat pitch we were looking for failed to materialize, and MER shares are instead getting slaughtered today. We’ll set aside our put bid for now, recognizing that a juicy shorting opportunity has become very unlikely in the current flux of uncertainties.