We hold eight December 40-45 call spreads that were acquired for nothing but which could produce gains of as much as $4000 if SLW is trading $45 or higher come December 21. Yesterday’s surge, which created a bullish impulse leg on the hourly chart (see inset), was the first encouragement we’ve had in weeks. If it bulls back in the manner shown, bulls who have been looking for a belated entry opportunity may get their chance. _______ UPDATE (11:12 p.m. EDT): The rally looks likely to provide a free ride to at least 41.14, the Hidden Pivot target of the pattern shown. _______ UPDATE (November 5, 10:40 p.m.): After peaking at 41.30, 16 cents above our target, the stock has relapsed to a so-far low of 38.40. This is disappointing, although the tedious chop since late September’s 36.33 low is still technically a consolidation. It would take an unbroken fall exceeding 36.33 to change that._______ UPDATE (November 12, 1:32 a.m. EST): On the daily chart, resistance looms in the form of two hidden Pivots that lie, respectively, at 41.97 (A=36.33 on 9/26; B=40.91 on 10/5); and at 42.13 (A=37.39 on 10/24; p=40.35).
