There was nervousness in the chat room about missing the next big rally. To avoid this, if the opportunity should arise, I’ll suggest using camouflage to get long — albeit not in the same size we would if buying at a ‘D’ correction target. A ‘b-c’ pullback from just above peak #3 would set up the trade, but please inquire in the chat room if you are not confident about how to proceed. Since we’re trying to leg into vertical call spreads, we’ll start with some cheapies for under 0.60. That could mean going as high as the 125 or 126 strike to open the position. The goal thereafter, presumably on a strong rally, would be to sell options two or three strikes higher for as much as we’ve paid for the long side of the position. We’ll start with four contracts, but I may suggest stepping up the size if the entry looks sufficiently promising. _______ UPDATE (10:33 a.m.): TLT went lower, so we did nothing. The ease with which sellers cracked the 120.03 midpoint support of the pattern shown implies more slippage to the 118.20 target. If this vehicle gets there, it will be an excellent place to try bottom-fishing aggressively, legging into the long side of our intended vertical spread. Stay tuned. Pivoteers should also notice that a rally back up to p=120.03 would be a spec short.
