The bullish ABC pattern highlighted in the chart is so fetching that I would use it to teach fine points of the ‘camouflage’ entry technique. The stubby little impulse leg masks the underlying power of the rally, which has exceeded the two prior peaks — one internal, the other external — as required. Now, if a point ‘C’ low were to form in the approximate range 162.80-163.05, turning the set-up into a picture-perfect ‘counterintuitive’ entry opportunity, don’t hesitate to get long at ‘X’. If you use options and the trade goes our way, try to leg into ‘free’ $1 vertical call spreads the first chance you get.______ UPDATE (February 24, 8:30 p.m. EST): Stocks fell hard at the opening, and although they later reversed to close ‘green’, the trade outlined above never triggered.
