It is with some mild trepidation that we have stepped into the path of a rampaging bull via short recommendations in the E-Mini S&Ps and Diamonds. Some might liken such gamesmanship to drumming playfully on a rabid badger’s snout. Using December 155 put options, subscribers were advised to risk about $200 on the DIA trade — a bet that could pay off at juicy odds if our tight stop-loss survives whatever nitwit hysteria greets Wednesday’s latest twaddle from the Fed.
Concerning the short in the S&P futures, it was advised only for subscribers who had held long positions from well below these levels. As it happened, the 1767.00 target we disseminated on October 18, with the futures trading nearly 40 points lower, nailed the top of yesterday’s rally within a few ticks. We’ll know shortly whether this Hidden Pivot resistance is strong enough to repel the stampede. In any event, we’ve got yet one more target to use if the broad averages continue to shred their way higher. For the precise location of this target, as well as a minimum upside objective you can use if 1767.00 gets trampled, click here. You’ll receive a free trial-subscription that will provide access to Rick’s Picks 24/7 chat room, to action-oriented intraday bulletins, and to detailed daily trading ‘touts’ and analysis of popular trading vehicles.