If DIA pushes decisively past the midpoint resistance at 166.51 shown, it would presumably be bound precisely for the pivot’s D sibling at 168.02. I would encourage pivoteers to play the long side for now, using an uptrending abc pattern from the lesser charts to generate a buy signal. If and when 168.02 is closely approached, you should reverse the position and get short using just-out-of-the-money puts with an August 22 expiration and a 167.50 strike. A price of around 0.85-0.90 would be about right, but you may need to adjust that on-the-fly. Make the order good through Friday. ______ UPDATE (8:35 p.m. EDT): No change. I still like this play. _______ UPDATE (August 18, 9:35 a.m.): The target is still good, implying you should reverse a long position when it is reached and get short. Use weekly puts expiring August 29 at the 167 strike. _______ UPDATE (11:43 a.m.): Based on chat-room discussion, I’ve tracking a multiple of four August 29th 167 puts with an 0.82 basis, stop 0.57. Hold tightly to the stop, since we are intercepting a speeding freight train.
