This vehicle’s ups and downs have been so precisely predictable lately that I’ve been posting tradable pivots in the chat room for your pleasure and potential profit. Yesterday, for instance, with the futures hovering near 1827 after a 21-point drop, I put out the following trade recommendation:   “A downside target at 1821.50 is analogous to the one at 163.44 that I’ve flagged in DIA. It can be bottom-fished with a 3-tick stop-loss.”  Long-time subscribers will know that when I am very confident about a price pattern, I will advise trading its target with a straight bid and a tight stop-loss rather than via camouflage.  In this case, however, the canny buyer would need to have placed a bid a single tick above the target, since the actual bottom occurred at 1821.75.

I’d anticipated this as well in the post immediately following the trade recommendation: “I haven’t published this target outside of the chat room, but be prepared for front-running nevertheless, since there’s always a suspicion that a Goldman mole inhabits this room.”  Whether or not it was Goldman’s trade desk that got in front of our bid will never be known. But clearly, we’ll need to take steps to prevent our getting shut out of trades in which we’ve nailed a swing high or low within a tick or two.  To that end, before ‘going public’, I’m going to wait a bit longer, until the vehicle we’re trading is closer to the target.  I am also going to add some profit vehicles to the mix that are not as heavily overtraded as the E-Mini S&Ps.  If you’re keen on taking advantage of the opportunities thereof, be prepared to pull the trigger when I’m in the chat room.