We hold a two-contract tracking position whose cost basis, adjusted for paper gains on six contracts already exited, is 1715.10. A 1720.00 stop-loss should be used for both in conjunction with a one-cancels-other order to exit one contract at 1740.70. That’s slightly below a minor Hidden Pivot target, and although Sunday night’s nasty bull trap missed our number by a hair, the stop-loss still applies. These numbers relate to the March contract, but you should roll into the Aprils as soon as possible, allowing a price differential of about $3. Basis April, a stop-loss of 1724.30 would apply in conjunction with a closing order on one contract at 1744.90. Our adjusted cost basis will be 1718.10. As of around 8:35 p.m. Sunday (EST), the corrective weakness targeted 1729.20, basis the February futures.
