The futures are just inches from a 1767.00 target that has kept us bullish from lower levels. As noted here earlier, if you’ve caught a ride from 1759.00 or lower, reverse the position (an assumed four contracts) and go short at 1765.75, stop 1769.25. ‘Camouflage’-equipped traders can try this one too, keeping in mind that this particular vehicle has been devilish about giving us the kind of easy-entry abc patterns we thrive on, even at turning points that we’ve called correctly within a tick or two. That’s why I am recommending getting short via a straight offer, albeit only to those who have done the ‘heavy lifting’ required to ‘draft’ a trend that’s gotten trickier with each new upthrust. _______ UPDATE (October 29, 12:01 a.m. EDT): We’ll need to respect a new pattern with a target at 1782.50 that has taken shape. Although it is of lesser degree than the one we’ve been using at 1767.00, it is not unusual for such patterns to extend a move beyond the marquee number. Accordingly, I’ll suggest lower the stop-loss given above by 1.00 point, to 1768.25. If it gets crushed, I’ll be looking to try again at 1782.50. Camouflage will be the preferred method to get short, but I’ll also sanction a single-contract short from 1782.00, stop 1783.75 for those inclined to do it the easy way. _______ UPDATE (9:51 p.m. EDT): It’s always dicey shorting a target that has been hit in the final moments of a session. What happens next is a coin-toss at best, but my hunch is that Fed-driven hysteria will put the 1782.50 target in play early Wednesday. If you’re short already on the terms I’d advised, you have a healthy profit to cushion the risk. But you’ll need to monitor the action overnight in any case, and to apply the stop-loss as advised. _______ UPDATE (October 30, 3:50 p.m. EDT): Only one subscriber reported doing the trade, and he got stopped out for a small ($100) loss. If initiated via camouflage, however, the first entry opportunity meeting our criteria straightforwardly was signaled at 1769.50 (5-minute chart, around 9:40 a.m.). The coordinates were as follows: A=1771.25, B=1768.00, C=1770.50.
