Yesterday’s tout suggested sitting back and watching this vicious little sonofabitch screw with the heads of bulls and bears. This proved to be good advice, since the day consisted of a frustrating series of fakeouts, feints and swoons that netted out to zero and which would have challenged even the most patient traders. For Friday, as a gift to subscribers eager to beat their heads against a wall, I am proferring the three targets shown. They comprise a series of descending Hidden Pivot supports, each of which could be used either for tightly stopped bottom-fishing, or perhaps ‘mechanical’ shorting. Two of the three are well away from ‘structural’ supports and therefore should work particularly well for bottom-fishing. That implies that your stop-loss could be as tight as three to five ticks.________ UPDATE (8:43 a.m. EST): The first two pivots worked precisely for bottom fishing overnight: a seven-point bounce worth as much as $325 per contract occurred from within two ticks of p (2036.00); and a six-point bounce occurred from within two two ticks of p2 (2024.50). The D target at 2013.25 is in play, although no mechanical short has been signaled to it yet.________UPDATE (12:10 p.m.): The futures are down just a few points at the moment, but there may be more weakness than is readily apparent, since the 1993 target gave way so easily. To generate a new target, I suggest using the following coordinates on the 30-minute chart: A=2058.75 (12/10); B=1996.25. That yields Hidden Pivot supports p, p2 and D at, respectively, 1988.25, 1972.63 and 1957.00. Since p has already gotten crushed, 1972.63 should serve for now as our minimum downside target. ‘Mechanical’ trade opportunities will be cach-as-catch-can.
