Although there’s no doubting the authority of the bullish pattern shown, the willingness of bulls to ‘actualize’ it seems to be a problem. A signal has been tripped for a rally to as high as 184.04, but stocks have been so leaden lately that the better opportunity would seem to lie in getting short at p=181.66. We’ll give it a try, buying two May 22 180 puts if DIA gets within 0.10 of the target. Stop yourself out of the puts if they trade for 0.20 less than you paid for them. ________ UPDATE (8:58 a.m. EDT): This vehicle has advanced overnight on extremely thin volume to as high as 181.81, generating a bullish impulse leg that looks too dangerous to short. This one indicates more upside to as high as 182.74, but there are other bullish patterns as well providing a simultaneous push. _______ DIA (May 17, 9:22 p.m.): Thursday’s breakaway gap topped at 182.64, a dime from our target. If DIA gets second wind, look for a new top of at least short-term importance at 183.10. _______ UPDATE (May 19, 9:44 p.m.): With DIA obliterating every minor Hidden Pivot in its way, I’ll suggest using the 184.04 target shown in the chart to get short (or perhaps long as well on the way up). The trade could wind up being jackpot-ish if the pullback from 184.04 is sharp. Put options to consider: May 22 183.50s and 183s. This is a longshot, so don’t bet the ranch. Also, bail out if DIA trashes the 184.04 resistance — meaning, exceeds it by at least 11-13 cents. Were that to occur, we’d probably be looking at more upside to at least 184.90, the midpoint pivot of a larger pattern begun from 170.10 on February 2.
