Buyers could have an excellent opportunity to get long via camouflage using the price points shown and the subtle ABC pattern thereof. Buy one contract using a buy-stop at the still-undetermined ‘x’, but step it up to four contracts if you’re able to use ‘camo’ in a pattern of lesser degree with theoretical entry risk of $70 or less. If things play out close to how I’ve drawn them, I’ll establish a tracking position for your further guidance. _____ UPDATE (10:30 a.m. EST): If you’d drilled down to the 5-minute chart when the futures, at around 4 a.m., first exceeded the 1635.20 ‘external’ peak shown in the chart, you could have caught a ride with perfect camo on the pattern A=1631.60, B=1636.30 and C=1633.10. Entering at x=1634.30 and taking a partial profit on half the position at p=1635.50 would have left you with two contracts and an effective cost basis of 1633.10, with a further reduction to 1628.40 after exiting a third contract at D=1637.80. Thereafter, you were on your own, but if you’d stopped yourself out of the final contract by waiting for a bearish impulse leg on the 5-minute chart, you’d have exited the position at 1633.00 for a theoretical gain of $460. More profits were not to be, at least not from the long side, since DaBoyz pulled out the rug after the not atypical, sleazy, overnight top-and-relapse price action that followed. Unfortunately, and unlike what has occurred in the index futures, this selloff is happening without having created a bullish impulse leg on the hourly chart. Buyers could have done so with just a little bit more oomph, but as things stand, the high-water mark missed exceeding December 13’s key high at 1645.50 by 2.20. NOw, short-term bulls could regain their mojo with a push exceeding 1627.80, but I wouldn’t trust anything less.
