I suggested taking short positions on the close Friday because the S&Ps, Apple shares and the Dow Industrials were simultaneously topping precisely at major Hidden Pivot targets I’d flagged earlier. The coincidence seemed opportune, even if we won’t know till Monday whether the targets are going to hold. If not, and the respective trading vehicles blow past them, higher targets from patterns of larger degree will be in play. The clearest and most immediate of them is 144.56 in AAPL, and I’m therefore suggesting closing out the March 13 121 puts if the stock trades above 131.00 — $1.80 above the original target. For the record, I am as curious as you are about what will happen when three important, crystal-clear Hidden Pivots get hit simultaneously — on a Friday afternoon, no less. My gut feeling is that shorts were left hanging on the ropes Friday, and that there is therefore no way stocks will simply fall Sunday night and make it easy for us. In any case, I’ d suggest using a disciplined approach by using the stops I’ve suggested for ESH and AAPL. I also suspect that within 4-6 weeks, price action relative to the three pivots will have clarified their “effect” in such a way that we will say, Wow! Look at how well that worked! We’ll let the futures tell us how, though, since there are many possible outcomes. Just one of them, for example, might be a rally decisively past the pivots, followed by a precise pullback that provides a belated buying opportunity ahead of final moves to the higher targets.
