Finally, the breakout we’ve been waiting for! I provided some big-picture targets as high as 1970.50 for this rally in yesterday’s tout, but for trading purposes you should focus on the more immediate one at 1917.25 shown in the chart. The implied 24 points of upside from current levels leaves room for night owls to make a modest score, but I suspect that easy entry opportunities will diminish and perhaps vanish by Tuesday’s opening bell. If you have the good fortune to catch a ride to the target, consider reversing the position and using some of the implied profits to cushion the stop-loss of a short initiated there. _______ UPDATE (May 13, 6:49 p.m.): This is one of the most half-baked breakouts into record territory that I can recall, despite the fact that the news media have been duly trumpeting the event, such as it is. Our minimum upside target for the very near-term remains 1917.25, and at the rate bulls are going it could take a week for this vehicle to cover the requisite 19 points to the target. Keep in mind that there is zero bullish buying at this point, only short-covering and the inexorable flow of OPM thrown at stocks by mostly-clueless money managers who couldn’t hold down a CETA job if they were forced to live by their wits.
