Factor out the hiccup at the opening (see inset), and yesterday’s price action amounted to an unusually boring day. Are shorts finally starting to mellow after taking it in the, ahem, shorts for six straight days? It would seem so, and that would imply stocks will be less buoyant, or perhaps even leaden, in the days ahead. There was a whiff of short-covering fear in the final minutes of Tuesday’s session, when the futures spasmed five points higher in a minute. But if trading on a whim, I’d rather have gone home short than long. Even so, we should view any pullback as prelude to thrust that will challenge the all-time highs. Accordingly, you should look for a bottom-fishing opportunity in any downtrend that runs out of steam at its p or D Hidden Pivot. ________ UPDATE (Feb 14, 2:06 p.m EST): The latest installment of the Mother of All Short Squeezes is on its way to exactly 1841.25, a Hidden Pivot rally target I posted in the chat room several hours ago. I’ve suggested shorting there only to those who were long from 1823.25, the best ‘camo’ buying opportunity of the day. I wouldn’t suggest carrying a short position over the weekend, however, since the futures seem all but destined to close within spitting distance of December’s all-time high.
