ESZ13 – December E-Mini S&P (Last:1807.00)

We were using an 1814.00 rally target yesterday, but I lacked the imagination to foresee that this glue-horse would fail to muster the implied four points of upside. Now, another Hidden Pivot has popped up that looks even more compelling.  It lies at 1814.25, and because the original target remains viable as well, the implication is that there will be double stopping power thereabouts. Accordingly, I’ll recommend shorting a single contract at 1814.25, stop 1815.25. There should be no illusions about catching a major top here — this is just a trade, is all. But the target looks to me like the sort that cannot fail. Scalpers will be on their own if the order fills and gives way to a pullback of at least 3.00 points. Please note that this gambit could trigger overnight, denying regular session traders an opportunity to lay ’em out. ________ UPDATE (8:05 a.m. EST):  An ostensibly modest rally target continues to remain out of reach, notwithstanding our eagerness to get short there. We should conclude the obvious: That for the time being, nothing but weakness lies underneath. Absent the conditions needed to trigger a short squeeze, DaBoyz will have to take the futures lower before they can run them higher.  I continue to think that the rally will come, but no earlier than the middle of next week, when December out-of-the-money calls have been thoroughly killed. In any case, the short from 1814.25 is kaput.