Friday’s selloff blew my delicate bottom-fishing strategy to smithereens, inflicting a loss of $100 theoretical per contract on anyone who used the 19.385 bid and four-tick stop-loss I’d advised. The daily chart still looks encouraging for buyers nonetheless, since last week’s downtrend followed a rally that slightly exceeded the two external peaks that I’ve labeled. This generated a bullish impulse leg that implies any weakness should be bought — ideally via a ‘counterintuitive’ signal along the lines of the hypothetical set-up I’ve sketched. If you trade this vehicle, stay tuned to the chat room for further guidance in real time. _______ UPDATE (September 12, 9:36 p.m. EDT): The futures tripped a ‘counterintuitive’ buy signal at 19.174 off a pattern similar to the one I’d sketched. Since there were no reports in the chat room of fills, however, I have not established a tracking position. Regardless, I’ve posted a new chart to show you what you’ll be shooting for: most immediately, a ‘D’ rally target at 20.400 that is subsumed by a larger pattern projecting to as high as 23.745. (Note: Only the lower target is in play at the moment.) Hidden Pivot levels x, p and p2 can all be used to effect a belated ‘mechanical’ entry, but because the implied initial risk is as much as $200o per contract, I’d strongly suggest using ‘camouflage’ to get aboard — and even then only if you confidently understand the tactic.______UPDATE (Sep 14, 6:15 p.m.): It would take a pop above the 19.555 Hidden Pivot shown to get December futures’ juices flowing. The presumptive target thereupon would be 20.345.
