DIA has spent more than a week pussyfooting with the 216.01 ‘secondary’ Hidden Pivot shown (see inset), unable to muster the modest finishing stroke it would take to reach a corresponding rally target at 217.45. This is tired price action, but also quite tiresome for anyone who would attempt to catch a profitable ride. For now I’ll suggest two possibilities: getting short if 217.45 is hit, or long if DIA pulls back to the green line at 213.14. In either case, you should use near-the-money-options with at least one week left on them but fewer than three weeks. Thus, if 217.45 were to be achieved by, say, Wednesday, you would buy four August 8 217 puts; or at 213.14, four August 8 214 calls.
