Based on the 1451.40 target given here yesterday, we’ve still got a 20-point bull trade to look forward to. The ride higher has been anything but comfortable, but if a chop-and-slop ascent is all we’ve got to work with, we’ll deal with it as best we can. In practice, that means taking note of the look-to-the-left peak I’ve highlighted at 1434.50. It is likely to go unnoticed by other traders, but if a rally exceeds it by a tick or two and pulls back in shallow ‘b-c’ fashion, it will be ideal for generating an entry signal that gets us aboard with just a few ticks of theoretical risk. _______ UPDATE (11:43 p.m. EDT): The pullback from just above 1434.50 provided as felicitous an entry opportunity as camouflageurs are going to see in this vehicle. I’ve refreshed the chart to show the coordinates — each perfect in a way that, for proprietary reasons, I won’t go into: A=1426.30; B=1436.50; and C=1432.20. For tracking guidance, I’ll assume we are long one contract with an effective cost basis of 1427.30. For now, and until the futures reach our 1451.40 target, use an impulse-leg stop drawn from the 4-minute chart. At the moment –11:58 p.m. EDT — it would require an uncorrected downdraft touching 1438.70 to pop us out of the trade. Above 1451.40, we’ll be swinging for the fences. _______ UPDATE (9:49 a.m. EDT): After hitting a high this morning of 1454.80, the futures have gotten slammed. Use a stop-loss at 1443.60 for the time being. If it’s hit, the theoretical gain per contract would be $1630. _______ UPDATE (10:15 a.m. EDT): Switch to an impulse-leg stop on the 10-minute chart. At the moment, activating the stop would require an uncorrected fall to 1443.00. If you’re managing a position, you should check out the 10-minute chart to see exactly what I am talking about. A new target at 1507.20 currently obtains (60m, A=1335.60 on 4/17, B=1438.80 on 4/22).
