We went boldly where so many other traders seemed to be yesterday — i.e., to the short side of this vehicle, testing the moxie of a 1974.75 rally target that looked like it might show some stopping power. It did, although not for long. The futures quickly munched their way through the Hidden Pivot, and although they didn’t get much further, it was clear that short-covering bears would continue to be their own worst enemy. There’s little point in trying to get short now, though, since the September contract is within the magnetic field of July’s all-time high and will be drawn to it. We’ll take another look when it gets there, though, since the ‘camouflage’ tactics we sometimes employ to initiate trades work especially well when other traders are in a state of hysterical fear or greed. To us, the wild price swings they are apt to cause are simply impulse legs — and potentially tradable, as you shall see.
