The rollover of prices since year’s end is not unexpected, since it correlates with a peak in the E-Mini S&Ps that lay a just one tick from a Hidden Pivot target that had been more than a year in coming. I’d said here earlier that even a robust bull market such as we’ve seen in recent months would take at least 5-7 days to gather sufficient thrust for a run at the high. My hunch, however, is that we are in for a more extended correction and that it will come down to at least the 160.53 Hidden Pivot midpoint (red line) shown in the inset before stocks turn higher. That implies 350 points of downside, so I’m going to suggest a strategy that for me at least is wildly speculative: Buy 12 January (18) weekly 160 puts for 0.13 or less. Do not pay up, and do not do this trade in size. Keep in mind that close to 99% of the out-of-the-money puts that have been bought over the course of this bull market have expired worthless. (Okay, I invented that statistic, but you get the idea.) _______ UPDATE (8:55 a.m. EST): As long as DaBoyz are about to short-squeeze stocks higher on today’s fraudulent unemployment news, there’s no reason to bid aggressively for puts. Instead of trying to buy the 160-strike (Jan 18)puts for 0.13 or less, let’s lowball the Jan 162 puts with a 0.22 bid for eight of them. Check in the chat room later, since I may suggest raising the bid if this morning’s little hoax attempt fades quickly. _______ UPDATE (January 12, 10:12 p.m.): The puts traded down to an intraday low exactly at our price, 0.22, but because no subscribers reported buying them we’ll keep trying. Stay tuned to the chat room if you’re interested.
