A Hidden Pivot resistance at 175.89 corresponds to the very long-term target at 17622 that we’ve been using for the cash Dow index. Although our short position (four Nov 122 150 puts) was stopped out yesterday at 0.30 for a position loss of about $80, we can try to recoup this by 1) getting long enroute to the target, and 2) shorting aggressively when it’s reached. We’ll need to work the first trade in the chat room in real time, since it’s always going to be tricky getting long a bull trend as mature as this one. Getting short should be a piece of cake, however, since we need only buy put options if and when the target is very closely approached. Accordingly, I’ll suggest buying a dozen Oct 31 167 puts with DIA trading within 0.08 of the target. My guess is that the puts will be trading for around 0.55, but you’ll need to refine that by monitoring the bid/asked spread when the target gets close. Stop yourself out of the puts if they trade for 0.20 less than you paid for them. ______ UPDATE (September 22, 1:52 a.m. EDT): It may not be such a piece of cake after all, since stocks are falling Sunday night with this vehicle having gone no higher than Friday’s bull-trap peak at 173.13 (on the opening bar). We’ll put the order aside for now.
