Our focus when trading began Wednesday morning was a Hidden Pivot rally target at 2094.25. This is the first significant ‘hidden’ resistance above another at 2062.50 where the futures had stalled on Tuesday. A short from that priced yielded a quick profit for anyone who used the 2064.25 stop-loss I’d advised. However, when the futures reversed direction overnight and began to ratchet steadily higher, the implication was that they were bound for 2094.25. To leverage this target, night owls can get long with a ‘mechanical’ bid at p2=2074.75 (see inset), stop 2071.00. The trade uses a smaller pattern than the one projecting to 2094.25, but it offers commensurately smaller entry risk. There are no guarantees that the December contract will pull back to 2074.75 to fill our bid, especially since they failed to do so once they’d surpassed the midpoint pivot at 2063.63. You should attempt this gambit only if you are thoroughly familiar with the concept of the mechanical trade. Please note that the 2094.25 target is tied to another mentioned here earlier at 2126.25. An easy move past the lower number would shorten the odds of the higher number being reached.
