We’ll break a rule to try to short this rally, but you’ll need to rigorously apply the stop-loss I’m going to suggest if you do the trade. The 55.77 rally target shown in the chart is analogous to the one at 1227.25 that I’ve flagged in the E-Mini S&P. As you will also notice, however, any upthrust that hits that hits 55.77 is going to surpass a couple of prior peaks on the hourly chart, refreshing its impulsive bullishness. Be that as it may, I am going to suggest that you buy four September 55 puts if and when the Cubes get within 0.03-0.05 points of the target. You can do bigger size if you are confident you’ve got things under control and that know what you are doing, but blow out the position if the puts trade for 0.25 less than what you paid for them. This is NOT one of those trades where I can more or less guarantee that even beginners will make easy money, since, as I’ve implied above, the futures could easily move higher after pulling back from the target. I will therefore also suggest that if the position is showing a profit of at least 0.30 per option, that you close out half of the puts.
