I hadn’t imagined the selloff would be so powerful when we got short near the all-time high last week. In retrospect, it was short-sighted of me for me to have suggested covering the position for a modest profit, since the importance of the target itself implied the possibility of a powerful selloff. There’s no sense in looking back though, and I’m encouraged to think that some subscribers may have kept a piece of the original position, For your information, and to help you manage the risk of any positions still held, the stock tripped another sell signal yesterday at 59.18 that points to 57.66. Use this target however it may suit you, whether it be bottom-fishing or shorting with-the-trend. It holds promise as well for traders who would attempt to leg into vertical call spreads. _______ UPDATE (5:16 p.m.): Yesterday’s hysteria muddied the picture, but you could still use a new Hidden Pivot support at 57.16 to fish for a temporary bottom. On the 60-minute chart, this swing price can be found using these coordinates: A=60.81 on 12/15; B= 58.11 on 12/16; and C=59.86, also on 12/16. Be aware that any slippage below 57.16 would portend more weakness to as low as 55.91, a Hidden Pivot support that will be less risky to bottom-fish than the one at 57.16. There’s also a small chance of a reversal from 57.89, give or take two cents.
