Shorts continue to wring each other’s necks, driving stocks into a parabolic rally that threatens not only to erase January’s hard-won gains to the downside, but to send the broad averages into new record territory. In after-hours trading Monday night, bears looked ready to extend the vicious short-squeeze begun last Wednesday into a fifth straight session.

Action earlier in the day had been subdued, with the Dow finishing little changed. But with few sellers around at the moment and on very light volume, the futures are steadily inching toward the 1800.50 target (see inset), a Hidden pivot. It is clear enough that I would ordinarily suggest getting short there. You can try it, but only via a ‘camouflage’ entry strategy that would subject you to initial theoretical risk of no more than five ticks per contract. If the target gives way easily, however, a further run-up to the mid-1840s, where the E-Mini made its highs in January, would become likely.  Alternatively, traders looking for a ride higher should try to leverage a B-C pullback from a tick or two above late January’s 1801.25 peak. The entry trigger would likely come very quickly off the ‘C’ pullback low, so be ready to act if the opportunity presents itself. _______ UPDATE (10:30 a.m. EST): For purposes of getting long, today’s price action has dished up only garbage, even for the most diligent and alert trader.  To get long anyway, I’d suggest using only set-ups that are perfect or very nearly so from a ‘camouflage’ standpoint.