We’re looking more and more aggressively for low-risk opportunities to get short, since it’s possible that stocks have entered a bear market. This equity-based (as opposed to futures-based) vehicle is optionable and highly liquid, so that, for the benefit of novices and experts alike, I’m going to start stalking it as we are already doing with the QQQs.
For the moment, however, we won’t attempt to impede it, since yesterday’s spike just before the bell exceeded the ‘D’ target of the minor pattern shown. If still higher prices impend as we might therefore expect, the shortable 129.75 ‘D’ target of the larger pattern begun on June 5 is a logical minimum price objective. Its midpoint sibling at 126.80 is close enough to yesterday’s high to yield an enticingly shortable top, but it is not my practice to establish short positions ten second before the final bell. If the high had been achieved with 30-60 minutes remaining in the session, tough, I’d have said, “Short away, camouflageurs!”