The week has begun with a short squeeze that recouped Friday’s middling decline and then some. The rally projects to at least 2083.75, the midpoint Hidden Pivot resistance of a bullish pattern projecting to 2121.75 (see inset). If that last number is achieved, an equivalent rally in the Dow Industrials would tack on about 350 points, surpassing by about 70 points the record-high 18167 recorded on April 20. The broad averages would be in uncharted water at that point, presumably more vulnerable than ever to a mood swing, and that’s why we should want to get short up there if we can. But we’ll attempt it only if there is a clear Hidden Pivot target to limit our risk. This goal will be best served if we’re able to rack up some gains on the way up. Accordingly, traders should look to get aboard with a ‘mechanical’ bid at any of the three available Hidden Pivot levels: x, p or p2. You should attempt this only if you are familiar with the simple rules of the ‘mechanical’ trade. For guidance in real time, stay tuned to the chat room, where there will nearly always be at least a dozen Hidden Pivot Webinar grads who know what they are doing. _______ UPDATE (9:41 a.m.): The futures have been down as much as 16.50 points overnight, and although the selloff has generated a bearish impulse leg on the hourly chart, bulls still hold an edge. That’s because yesterday’s high, which exceeded some ‘external’ peaks near 2076 from Friday, was more bullish than this morning’s selloff is bearish. That would imply that DaBoyz, bending to the ostensible bearishness of some inscrutable event elsewhere in the world, have simply taken stocks down far enough to deplete sellers. The inscrutable event, it would appear, is an economically downbeat report on Chinese manufacturing. This could have surprised no one, but it is DaBoyz’ job to at least act for the moment as though it did.
