What a day! Although intraday highs and lows associated with the even wildest price action are more or less predictable, it is only the very nimble who should be trading them. Yesterday’s histrionics don’t merit an explanation, since any account that we or anyone else might offer would be based on little more than rumors. From a technical standpoint, the series of $25 swings left the December contract in a dive that we should expect to terminate at either of two Hidden Pivot supports: 1172.20, or perhaps 1169.80 if any lower. The second number is the more conservative spot to try bottom-fishing, using a stop-loss as tight as four ticks. Night owls who attempt it should be aware that an easy overshoot of the lower pivot would likely augur a test of the 1146.00 low whence last Friday’s powerful surge took off.
