Much as I distrust this aging bull market and believe, as many of my colleagues evidently do, that it could collapse “any day now,” I am nonetheless comfortable using the 2524.44 Hidden Pivot shown as a minimum rally target. Because it is a ‘secondary’ pivot, a stall exactly at that price could activate ‘Matt’s Curse,’ sending the futures into a dive that presumably would exceed the pattern’s 2414.00 point ‘C’ low. We’ll watch closely if and when 2524.44 is approached. More immediately, the December contract would become a theoretical ‘mechanical’ buy if it comes down to the red line (2487.63), a midpoint Hidden Pivot. Since the implied entry risk would be around $3700 per contract, I’ll suggest using a ‘camouflage’ entry trigger on the one- or three-minute chart to set up the trade. This would have the effect of limiting the initial risk to as little as $40-$60 per contract. A less risky “mechanical’ entry would be signaled at the green line, but we’ll put that one on the back burner until after we’ve seen what happens at the midpoint pivot. Stay tuned to the chat room if you want to be apprised of such opportunities as develop in real time. ______ UPDATE (Sep 25, 9:40 p.m.): I don’t recommend trading against the trend as often as I used to because we’ve discovered better ways to initiate trades. I’ll make an exception here, however, because I like the corrective abc pattern and the “quiet” location of its 2490.75 midpoint Hidden Pivot resistance. Accordingly, I’ll recommend bidding 2490.75 for two contracts, stop 2489.75. If the order fills and goes in-the-black, close out one contract at 2493.00 and do as you please with the contract that remains. This trade could trigger in the wee hours, so night owls please take note. It somewhat contradicts my bearish outlook for DIA, but this is more of a low-risk scalp than a swing trade. _______ UPDATE (Sep 26, 4:57 p.m.): A gratuitous spike higher early in the session negated the trade detailed above. For now, we’ll stand aside.
