Yesterday’s rally was strong enough to stop us out of a short position I’d advised overnight, but I doubt there’s sufficient buying power for a strong follow-through. Even so, traders could bottom-fish with theoretical risk under very tight control using the chart shown. All three Hidden Pivot supports — p, p2 and D — occur in places where competition from other bidders is likely to be light. Accordingly, you should place your bid a tick above each, using a stop-loss as tight as 3-4 ticks. This implies that you’ll need a favorable move of at least 9-12 ticks before taking a profit on a multi-contract position, or before implementing a trailing stop for a single lot. _______ UPDATE (9:25 a.m.): The breach of 1101.80 just now portends more slippage to 1095.60 — or perhaps 1094.50, the end of the trail, short-term, for the hourly chart.
