The tout sent out Tuesday night identified a Hidden Pivot at 2104.00 where I suggested getting short with a 2105.25 stop-loss. The actual high, predictably achieved in the middle of the night on vaporous volume, was 2105.00, so the short position is still in play. Because numerous subscribers reported doing the trade, I’ve established a tracking position based on an initial position of four contracts. Half were to have been covered near 2081, based on a guidance I posted in the chat room intraday. That leaves two contracts with an effective cost basis of 2127.00. For the time being, I’ll suggest using an ‘impulsive’ stop-loss based on the 15-minute chart. That means you should close out the position if the futures rally to exceed the 2096.50 peak highlighted in the chart (see inset). To trigger the stop, the rally must not have any pullbacks greater than $4; otherwise raise the stop to 2106.00. If the futures continue lower I will bring the stop-loss down, so stay tuned to the chat room if you want to be apprised in real time. _______ UPDATE (2:31 p.m.): The futures peaked at 2095.25 just before dawn, missing our stop-loss by a hair. I am now recommending that an additional 25% of the position be covered in the range 2045-2047. That would leave us with 25% of the original position and an adjusted costs basis of 2185.00. At current prices, the gain on paper would be $6850 for each contract still held._______ UPDATE (3:41 p.m.): I am now projecting minimum downside to 2121.50 over the near term, or 1993.75 if any lower. The target comes from the hourly chart, where A= 2109.75 on 11/4.
