We hold a tracking position consisting of a single contract shorted one tick beneath last week’s high, 2047.50. Subsequent profit-taking on three-quarters of the initial position has raised its effective cost basis to 2074.75, indicating a paper profit of about $2500 per contract at current prices. We’ll let the position run for now, using the 2047.75 stop-loss advised here earlier. That means we are ‘locked in’ unless the futures recover to new highs. If that should occur, we’ll book a profit and look forward to getting short yet again, presumably with the futures at heights at or above the record levels achieved last summer. More immediately, the 2015.38 corrective target is an play — a minor Hidden Pivot support whose decisive breach would portend still more downside to d=2007.25. Alternatively, a print above 2039.75 would reignite last Thursday’s short-squeeze, opening a path to as high as 2054.00 over the near term.
