Coincident downside targets that lie at, respectively, 42.72 and 42.52 suggest there could be an edge for us in bottom-fishing there. Accordingly, I’ll recommend buying four January 42 calls if and when the stock hits 42.62. They would be a good deal for around 1.60, but whatever you pay, be ready to stop yourself out if the stock trades 42.39 or lower. Practically speaking, and assuming you stay alert to the stop-loss, your risk on this one would be around $30-$40 plus commissions. If you’d prefer to simplify the trade by using stock alone, bid 42.55 for 400 shares, stop 42.41. If either order fills, please let me know in the chat room so that I can provide further guidance. _______ UPDATE (December 10, 2:07 a.m. EST): The presumptive C-D leg is taking its sweet old time to develop, but the trade suggested above remains viable nonetheless, so we’ll continue to watch and wait. Please note, though, that a 45.45 print today would tip the short-term outlook in bulls’ favor. _______ UPDATE (December 11, 2:16 a.m. EST): For reasons that I explained during yesterday’s impromptu session online, I’m not a big believer in this short-squeeze rally (see inset, a new chart). We should remain open to the possibility of an impulsive rally on the hourly chart nonetheless, but yesterday’s surge did not quite achieve that threshold, and so the targets below $43 should still be held in mind. _______ UPDATE (December 24, 11:50 a.m. EST): The stock has taken a ferocious bounce from 42.96, denying us the easy entry opportunity we’d sought (although camouflageurs would have had opportunities a-plenty on the one-minute chart). The move was bullishly impulsive. However, because I don’t trust it, we’ll do nothing further for now.
