The Dow opened a hundred points higher yesterday but still managed to look like hell.  In the chat room early in the session, I flagged a potential bull trade in this vehicle but had second thoughts an hour later and canceled it. There really was nothing to trade, since the day was effectively over, at least for purposes of making money, on the opening bar. Stocks pulled back after the initial, fleeting short-squeeze, but it soon became apparent that bulls were incapable of mustering a follow-through.

If I sound bearish, that is not the case.  Yes, it’s a matter of record that I think the global economy is on a path to Armageddon.  But because the stock market has almost no connection to the real world, I have no problem telling you that I see almost no possibility that the Diamonds won’t reach the ambitious, 175.89 rally target shown. That would equate to an 1100-point rally in the Dow itself — and please note that I would be inclined to ease out of any long positions if and when the target is closely approached.  I would also short that number aggressively — but with a tight stop-loss, since there can never be any guarantees that we are catching The Top, just ‘a’ top. Traders eager to hitch a ride on the January Express should view a pullback to the red line (160.53, a midpoint Hidden Pivot) as a fat opportunity. If you’re looking for more precise entry instructions, stay close to the chat room (or click here for a free trial subscription that will get you into the room).