he December contract did all we asked of it Friday, setting up a buoyant opening Sunday night that has immediate potential to as high as 1664.00, a Hidden Pivot 20 points above the evening’s so-far high. A midpoint resistance at 1649.20 must be exceeded first for the rally to get off the launching pad. However, long entry will be difficult, even via camouflage, because the midpoint lies just inches from Friday’s high 1649.80, a breakout number that other traders will be watching. _______ UPDATE (12:08 p.m. EDT): A $27 rally brought the futures to within 70 cents of my target before relapsing down to a so-far low of 1651. The rally refreshed the bullish energy of the hourly chart, creating a camouflage pattern that would have yielded a small profit so far (A=1647.70 at 6 a.m., B=1663.00, C=1651.00, and X=1654.90 for a “successful” trade to the 1658.80 Hidden Pivot midpoint.) For your guidance, and because my earlier advice was explicit with respect to the ‘camo’ opportunity, I’ll track two contracts from an initial position of four. Assuming two others were exited at 1658.80 (aka ‘p’), the two that remain have a theoretical cost basis, reduced by profit-taking, of 1651.00. Exit one of the contracts now, at around 1654.00, and we’ll tie the last, with an imputed cost basis of 1648.00, to a “structural” stop-loss at 1647.70.
