Friday’s wicked plunge obliterated the midpoint support at 17.678, turning a 16.350 downside target into an odds-on bet. A ‘mechanical’ trigger can be used to get short on rally back up to ‘p’, provided there are a few bars in the interim that lie fully below the red line as we require. The theoretical entry risk using this tactic is about $2200 — equal to a third of what you stand to make if the futures reach the target. Under the circumstances, I’d recommend substituting a ‘camouflage’ entry on a chart of five-minute degree or less. Ask me or someone else about this in the chat room if you’d like to know more. _______ UPDATE (Nov 16, 7:24 p.m. EST): Tuesday’s feeble rally has left the futures vulnerable to a fall to the 16.350 target, but they could get out of jeopardy with a print today at 17.460. If that happens, look for camouflage entry opportunities on the 15-minute chart, since there are plenty of ‘external’ peaks there to qualify the trade.
