With index futures in a deathly state of coma, it’s a good time to look at currency futures, which have been moving ferociously. The British pound is in two-year plunge that projects to 1.04, a nearly 15% drop from these levels. It’s a spec buy around here, however, having gently probed the 1.2120 ‘secondary’ Hidden Pivot of the pattern shown. The chart tracks a continuous contract, and although that means we should discount the perfect hit at p=1.3805, I think the 1.0432 target will work fairly precisely. Our ‘buy’ signal has come from the continuous chart, but for trading purposes I’ll suggest using the December contract, 90-minute, where A=1.3042 on 9/30, and B=1.2041. The midpoint Hidden Pivot support lies at 1.1999, so let’s plan on doing our bottom-fishing there, preferably using camouflage. I’ve set an alert on the chart to warn me when BPZ closely approaches the support, but I would encourage currency-trading Pivoteers to tune in and sound the alarm in the chat room when appropriate. We should also be on the lookout for an upturn from somewhere above p, since the lesser charts are bullishly impulsive. _______ UPDATE (Nov 3, 8:56 p.m. ET): The futures have taken off without having gone any lower than 1.2093, so our lazy bid went unfilled. If you are still eager to get aboard, I’d suggest using this pattern on the 30-minute chart: a=1.2403 (11/3 at 8:00 a.m.); and b=1.2505. Entry at x=1.2453 has already triggered, but there may be other opportunities to get long ‘mechanically’ from p=1.2478 or p2=1.2504. The new chart shows these Hidden Pivot levels and the target.
