On paper, we’re short two contracts — effectively from 1413.00, since we covered two for a partial profit at 1405.00. For now, use a fixed stop at 1408.25 for one of them, and at 1411.50 for the other. On a one-cancels-other basis, you should also cover a third contract at 1391.00. Overall, this strategy for risk management lies somewhere between “swinging for the fences” and getting out with at least a small profit no matter what. One reason we are not going for broke on this one is that my big-picture forecast allows for a Dow rally above 14000.
