Yesterday’s stop-loss on a bottom-fishing recommendation missed nailing the intraday low by a single tick. The three-tick stop I’d recommended was quite tight, to be sure — but not too tight, considering how pretty the pattern that produced the target was. A couple of chat-room denizens who had judiciously left a little more room reported catching a ride anyway — and it could have been a good one, since the subsequent rally was an 11-pointer. A relapse has brought the futures down to within inches of the day’s low, which itself created such a nasty looking impulse leg that I’m inclined to think it’s a bluff. I wasn’t looking for the stock market to Santa-up until next week, but perhaps yesterday’s fright-mask performance wig augurs an upturn sooner than that. _______ UPDATE (December 13, 12:01 a.m.): I hadn’t noticed this earlier, but the futures have generated the first bearish impulse leg we’ve seen on the daily chart in a long while. This argues for caution, at least until a second down-leg (aka C-D) tells us, via price action near the Hidden Pivot midpoint, how serious the threat is.
