Chat-roomers used a 1954.25 target to get short yesterday two ticks from the intraday high. The futures’ subsequent fall of 9 points from the top was worth as much as $460 per contract, but it would appear those who took the trade exited before day’s end using the impulse leg-based stop-loss I’d suggested. If anyone stayed short, please let me know in the chat room and I’ll provide tracking guidance. Early Tuesday morning, it was not impossible to know for certain whether the top will survive. The futures were in a correction that projected to 1942.00 (see inset), contingent on the breach of a midpoint Hidden Pivot support at 1946.50. Night owls can bottom-fish that last number with a 1946.50 bid and a 1945.75 stop-loss. There is one more Hidden Pivot above — an unfulfilled target of major degree where we could try shorting again if this vehicle takes flight. I’m not going to publicize it here, but it was made available by email request last week, and so you can ask around in the chat room for the precise pivot. A three-tick stop-loss would ordinarily be appropriate, but you can widen it to suit your style, since this target has the potential to become a major top. _______ UPDATE (10:05 a.m.): The futures went all headless chicken on the opening bell, but the fact that they dipped below my bottom-fishing number overnight implies the underlying theme today will be more weakness. _______ UPDATE (10:49 a.m.): Since a subscriber in the chat room has reported staying short from yesterday, I’ll provide a tracking position for his guidance and the guidance of anyone else still in the trade. For now, I’ll suggest an ILBSL (impulse leg-based stop-loss), using the 15-minute chart. That would imply that the rally from the headless-chicken low at 1943.00 recorded minutes ago surpass these two prior peaks : 1948.75 (9:45) and 1951.00 (4:15 p.m yesterday). To stop us out, the move must occur WITHOUT A ‘bc’-type PULLBACK occurring between those two peaks.
