The stop-loss I recommended for those still long at yesterday’s 1307.00 top would have ejected bulls from the position near 1296.20. Buy-and-hold is NOT an option in this vehicle, since, more than three years into a bear market, any downtrend could be the start of something nasty. We shouldn’t sweat the extra work of getting in and out as long as entry opportunities on the rallies are numerous and relatively easy to exploit. One to consider Wednesday night if you’re a night owl is a bid at the 1285.60 midpoint Hidden Pivot support shown. A three-tick stop-loss would be appropriate, but keep the position size down to a single contract unless you make entry via ‘camouflage.’ Of course, an easy move through the pivot would be warning of more downside to 1275.30, a Hidden Pivot support that could be bottom-fished with a stop-loss as tight as 3-4 ticks. ________ UPDATE (January 22, 9:21 a.m.): The futures were unusually uncooperative, pulling back to 1283.30 for a small bounce before making an eventual low at 1279.10. In retrospect, the only ‘easy’ way in would have been via camouflage, where entry was sginaled on the 15-second bar chart at 1283.20 (7:34:30 a.m.)
