Crude has been moving with unusual predictability and precision to Hidden Pivot targets lately, allowing some subscribers to rack up substantial trading gains. Using the jargon of the Hidden Pivot System, one subscriber sent me the following email: “Booked this CLK5 winner, perfect P action, closed above P then retested P. I got in at P and also got in at X too.” Wednesday night there were yet more potential opportunities, all derived from the pattern shown. Although the breach of ‘p’ is not yet sufficient for us to infer that more slippage is likely to the 59.41 target, there are several trades that could be extrapolated from the displayed pattern nonetheless: 1) a spec long from 60.39 (not advised at this point because it would be more risky than the first such opportunity, which came at around 7 p.m.; 2) a mechanical short on a rally back up to p after it has been decisively breached; 3) bottom-fishing at p2=59.90 with a tight stop-loss; and 4) bottom-fishing at 59.41 — again, tightly stopped. I should mention also that a short from 60.39 could be initiated using ‘camouflage’. That would significantly reduce the $980/contract entry risk implied by the mechanical trade. _______ UPDATE (10:49 a.m. EDT): What an effing mess! Crude has plummeted overnight to a so-far low at 59.14 that exceeded my worst case target by a whopping 27 cents. The implication is that the only trade in the catalogue above that would have worked is the one I had suggested NOT doing — i.e., buying at p=60.39. That trade would have been worth as much as $970 per contract. A short was possible from the high, but I had neither anticipated it nor advised it. Nor was a subsequent short possible on my terms once p=60.39 had been smashed to the downside. That’s because the corrective rally back up to p occurred too soon after its breach to generate a valid mechanical-entry signal. Thereafter, the plunge resumed, turning any bottom-fishing bids at p2=59.90 into chop suey, and ‘tightly stopped’ bids at 59.41 into the same.
