Last week’s crazed, pointless swings only slightly altered my short-term rally target, which is now 1984.50 (see inset). You can short there with a stop as tight as three ticks, but I would suggest this gambit only for traders who catch a piece of the implied 13-point rally. Night owls should take note of the three unsurpassed ‘external’ peaks that remain on the hourly chart, since a pullback from just above any one of them could provide an opportunity to get aboard the presumptive climactic thrust of the rally begun from Friday’s low. _______ UPDATE (July 22, 12:03 a.m. ET): The futures spent Monday screwing the pooch, but my outlook and advice for the near term remain unchanged. _______ UPDATE (8:11 p.m.): After recalculating my coordinates, I have changed the target. For the new number, which can be shorted with as tight a stop loss as you can abide, check out my 18:15 Tuesday post in the chat room. _______ UPDATE (July 23, 3:04 p.m.): Officially we’re short one contract in ES from 1382.50, based on my 13:45 post in the chat room. Since we risked 2.75 points initially, we need a move our way 3 x 2.75, or 8.25 points, before we implement a stop-loss. I’ll probably suggest an impulse leg-based stop-loss when 1374.25 is touched.
