The stock market’s likely behavior following Friday’s presidential inauguration seemed like a coin-toss bet, but I guessed wrong. The DIA weekly puts we bought on Friday for prices ranging from 0.38 to 0.44 have gotten snuffed by the most powerful rally since the first days of the new year. We know exactly where the E-Mini S&Ps, for one, are headed, but the key test will be whether the Hidden Pivot rally target mentioned in today’s tout gives way easily. If so, it will shift our focus to a significantly higher target that would equate to a further rally in the Dow of about 400 points. The Industrial Average would be well above 20,000 at that point, scoffing at a supposed ‘ceiling’ that was expected to offer granite resistance.
