I’m establishing a bullish tracking position as a result of an exchange in the chat room Monday night. Someone inquired whether I though the stock, then trading for 112.41, could rally to 116 by Friday. I replied that it “must fall to 109.22 first,” and called this HIdden Pivot support “an appealing place to try bottom-fishing.” This morning, the stock plunged to a low of 109.35, allowing subscribers who were following the stock closely to get long without much trouble. One subscriber reported a 109.50 fill on 200 shares, so I’ll establish a tracking position at that price unless I hear from someone who did worse. For now, take a partial profit on half the position now, at around 111.08. _______ UPDATE (7:37 p.m. EST): Based on the above, we hold a round lot with a profit-adjusted cost basis of 107.92. Stop yourself out only if a downtrend exceeds two prior lows on the five-minute chart without an upward b-c correction. Currently, that would imply an unpaused swoon exceeding 112.40. _______ UPDATE December 10, 5:42 p.m.): Based on the above, you should have exited the position on a stop at 112.82, at around 10:35 a.m. The theoretical gain on the trade would have been $490.
