Now that was refreshing! To update our tracking position, I advised covering an additional 25% of the short, which at current prices is showing a theoretical one-day gain of around $6600 per contract and a 2085 adjusted basis. The position had been initiated a day earlier at 2104.00, a few ticks off the intraday high. Thursday’s delightful plunge came after the obligatory off-hours rally failed by a whisker to trigger our stop-loss at 2096.50. The ensuing 50-point plunge has left the futures well shy of August’s 1823.00 low, but it’s never too early to start rooting against the thundering herd. The pattern shown (see inset) yields a minimum downside projection of 2021.50, the ‘secondary’ Hidden Pivot; or even 1993.75 if it gets trashed. Both p and p2 can be used to initiate ‘mechanical’ shorts, provided you know what you’re doing. I’ve sketched this out hypothetically for your guidance. For traders still short from 2104, I’ll assume a single-contract position remains. Tie it for now to an ‘impulsive’ stop-loss based on the 15-minute chart. As of Thursday’s close, that would imply exiting if the futures push above the 2063.25 peak made on the way down at 1:30 p.m. EST. ______ UPDATE (8:35 a.m. EST): The simple effectiveness of the impulsive stop-loss should be readily apparent by now. This one held — by two ticks — when the futures rallied to their obligatory overnight high, 2062.75. Raise the stop to 2076.75, since it looks like DaSleazeballs are fixing to short-squeeze this hoax yet again, before most traders arrive at their desks this morning and kill this volume-less rally.______ UPDATE (December 4, 11:5 a.m.): The stop-loss was hit moments ago, popping us out of the position with a theoretical gain of $5500 per contract. Under the circumstances, higher prices seem likely.
