Now wasn’t that refreshing! I put out an 1805.75 target intraday, implying a further decline in the Dow of at least 200 points awaits. I suspect this target will be achieved in one fell swoop on the opening bar, but that shouldn’t preclude getting short ahead of the move. In fact, apparent short-covering has lifted this erstwhile cinder block three points in after-hours trading, implying that there are yet a few bears out there who can’t get used to the idea of letting their profits run. Their understandable yellow streak could be our gain, however, since it has presented an opportunity for night owls to get short on…well, if not strength, than on an hour or two’s worth of delicately manipulated buoyancy. If you are fortunate enough to be short when the target is reached, I’d suggesting reversing the position and going long, using a a portion of your gains to cushion a generous stop-loss. If you are simply bottom-fishing to open a position, however, you should use the ‘camouflage’ technique, since the target may be too well-advertised already to favor a stress-free entry.
