The lunatics and thieves who stoked yesterday’s Tapeworm-induced short-squeeze are aiming for at least 1830.25, a Hidden Pivot target which if achieved would imply at least 200 more points of upside for the Dow over the near term. The so-far intraday high at 1806.75 refreshed the bullish energy of the hourly chart by exceeding all previous highs, but the futures will probably still need to pull back to at least 1797.25 to get a running start on the next leg up. If you’re keen on catching a ride higher, I’d suggest waiting for a second point ‘C’ low to form before acting. I’ve sketched this out hypothetically for your further guidance. ________ UPDATE (9:30 p.m. EST): In after-hours trading the futures have gotten within a single tick of tripping a buy signal at 1806.50 (see inset, a new chart). It would be the first such signal, however, rather than the second, which is the one I’d recommended jumping on. Accordingly, you should wait for the pattern to develop as I’ve sketched it before looking for an entry opportunity on charts of lesser degree. Assuming you’re a night owl, you could also attempt it on the signal that appears to be imminent, using the point ‘A’ low noted. This is suggested if you’re worried that the trade will get away from you if you wait for a second point C to form. ______ UPDATE (December 20 at 2:29 p.m. EST): In the chat room, I’ve drum-rolled an 1841.00 target, subject to midpoint resistance at 1818.00. As of this moment, the intraday high is 1817.75. I’ve flagged this number as very shortable and suggested doing so via camouflage on the one-minute chart. As of this instant (2:29:13), an impulsive downtrending abc would be signaled by an 1816.50 print. _______ UPDATE (3:34 p.m.): The short trade was explicitly, clearly and unmistakably triggered at 1816.00. Half the position was to have been covered, camo-style, two ticks lower; then a third contract at 1814.25. This trade is a camouflage ‘winner’, having reached the ‘d’ target of the camo pattern. You should now be short a single contract that can be used to swing for the fences. Late note: A subscriber reported doing this trade exactly-by-the-numbers — with 34 contracts!
