The Diamonds and the E-Mini S&Ps followed our script precisely yesterday, allowing Rick’s Picks subscribers to get short from the intraday highs in both. Because the E-Minis were raising some hell Sunday night, we allowed for a rally to as high as 1046 on Monday – equivalent to about a 200-point thrust in the Dow Industrials.  However, we saw an opportunity to get short at a lower target, a Hidden Pivot at 1034.00, and put out the following trading recommendation:  “…a lesser target at 1034.00 can be shorted by scalpers with a 1.25-point stop-loss provided it’s hit in the first hour and 1020.50 hasn’t been exceeded to the downside first.” As it happened, the 1034.00 target

was hit 57 minutes after the opening bell. The futures didn’t fall immediately, and in fact went a point higher, to 1035.00, missing our stop-loss by a single tick. They meandered sideways for the next few hours; then, about midway into the session they dove to 1021.25, yielding a theoretical profit of as much as $637 per contract. In an intraday bulletin, we told subscribers to take partial profits below 1026.00 and to hold onto at least a small piece of the initial position for a possible home run.

A similar opportunity played out in the Diamonds, where we told subscribers to look for a shortable top at 95.82. Here is the recommendation exactly as it went out Sunday night:  “Opportunity beckons, since the Diamonds are closing on a Hidden Pivot resistance at 95.82 that looks likely to cause a stall.  Buy two September 95 puts (DAVUQ) if and when the stock gets there. I estimate they’ll be selling for around 1.76 if you want to park a limit order with your broker…”  This recommendation could not have worked out more perfectly, since DIA topped at 95.81 with the September 95 puts trading on an intraday low of 1.75. (They closed at 2.00, up 14% on the day.)  “Pick of the Day” trades are offered on an occasional basis when it feels like the odds are strongly in our favor. The goal is to provide enough easy winners in the course of a year to pay the cost of a subscription. If you do not subscribe but would like to find how subscribers feel about the service, we invite you to drop by the Rick’s Picks chat room any time, 24/7. You can access it, along with trading recommendations, analysis and real-time updates, by taking a risk-free, seven-day trial subscription.  Click here to sign up.