SLW looks very likely to fall to at least 22.03 (see inset) before it can turn around. This Hidden Pivot target is sufficiently clear and compelling to warrant aggressive bottom-fishing, albeit with a tight stop-loss. Accordingly, I’ll suggest buying eight Oct 3 23 calls if and when SLW is trading within 0.06 points of the target. They’d be a good buy today or tomorrow for around 0.22-0.24, but ‘fair value’ would fall somewhat due to time decay as the week wears on. If you’d prefer to use stock, bid 22.06 with a 21.96 stop-loss. _____ UPDATE (Sep 16, 11:37 p.m. EDT): For the moment, we’ll put the 22.03 target aside, since SLW’s rally yesterday created a robustly bullish impulse leg on the hourly chart. Now let’s see if it can muster a second leg that is at least equal to the still-uncompleted first. _______ UPDATE (Sep 18, 1:07 a.m.): With yesterday’s nasty reversal, the 22.03 target is back in play. Use the strategy suggested above. My rough guess is that the calls will be trading on a bid of about 0.18 with SLW at or very near the target.
