In the chat room yesterday I suggested taking a small put position in DIA, but after taking a fresh look at the cash index, I’m going to cancel that order. My advice was based partly on the fact that the Indoos had stalled an inch below an important Hidden Pivot resistance. But the correction so far has been very shallow, implying that it’s far more likely to become a consolidation than a distribution. Also, if you draw the pattern from the one-off point ‘A’ low as I’ve done in the chart shown, it yields a so-far high that has exceeded our ‘hidden’ resistance. Under the circumstances , we should focus on low-risk opportunities to get long rather than accumulating puts. First, however, I would like to see this vehicle pull back a bit more, at least stopping out overly eager bulls below the point ‘C’ low shown. Since any subsequent ‘camouflage’ entry could be tricky, look for me in the chat room if the trade sets up like the one I’ve sketch hypothetically.
